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I would like help to answer the following questions: Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS),
I would like help to answer the following questions:
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 $4,200 $2,600 Variable cost of goods sold (2,650) (1,740) Manufacturing margin $1,550 $860 Variable selling expenses (794) (470) Contribution margin $756 $390 Fixed expenses (360) (160) Operating income $396 $230 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,900 2,000 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 $ Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin V Contribution margin ratioStep by Step Solution
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