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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 $6,400 $4,200 Variable cost of goods sold (4,030) (2,810) Manufacturing margin $2,370 $1,390 Variable selling expenses (962) (676) Contribution margin $1,408 $714 Fixed expenses (660) (290) Operating income $748 $424 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,600 Hurricane 1,900 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 6,400 X 4,200 X Variable cost of goods sold -4,030 X -2,810 X Manufacturing margin 2,370 X 1,390 X Variable selling expenses 962 X 676 X margin $ Previous Next >
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