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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: Conquistador Hurricane Sales price $4,800 $3,000 Variable cost of goods sold (3,020) (2,010) Manufacturing margin $1,780 $990 Variable selling expenses (772) (390) Contribution margin $1,008 $600 Fixed expenses (470) (240) Operating income $538 $360 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3.000 2.200 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 doi % %
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