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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
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 $5,600 $3,600 Variable cost of goods sold (3,530) (2,410) Manufacturing margin $2,070 $1,190 Variable selling expenses (894) (614) Contribution margin $1,176 $576 Fixed expenses (550) (230) Operating income $626 $346 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,200 Hurricane 2,300
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