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Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility
Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products:
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane $5,400 $3,600 (2,410) Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin (3,400) $2,000 (758) $1,190 (542) $1,242 $648 Fixed expenses (580) (260) Operating income $662 $388 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,100 2,300 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane Sales Variable cost of goods sold Manufacturing margin $ Variable selling expenses Contribution margin Contribution margin ratio % %Step by Step Solution
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