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 of capacity. The following perunit information is available for the two products:

Conquistador Hurricane

Sales price $ $

Variable cost of goods sold

Manufacturing margin $ $

Variable selling expenses

Contribution margin $ $

Fixed expenses

Operating income $ $

In addition, the following sales unit volume information for the period is as follows:

Conquistador Hurricane

Sales unit volume

Question Content Area

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

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Conquistador Hurricane

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$ Select

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$ Select

$ Select

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$ Select

$ Select

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Question Content Area

b What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?