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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

Sales price $4,800 $2,800

Variable cost of goods sold (3,020) (1,880)

Manufacturing margin $1,780 $920

Variable selling expenses (772) (472)

Contribution margin $1,008 $448

Fixed expenses (470) (180)

Operating income $538 $268

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

Conquistador Hurricane

Sales unit volume 2,200 1,500

a.put together a contribution marginby product report. Compute the contribution margin ratio for each product as a whole percent.

Galaxy Sports Inc.Contribution Margin by Product:

Conquistador Hurricane