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Only need the answer to A. Please show work. Thank you! Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain
Only need the answer to "A". Please show work. Thank you!
Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATV), 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 $5,200 $3,400 Variable cost of goods sold (3,280) (2.280) Manufacturing margin $1,920 51,120 Variable selling expenses (828) (610) Contribution margin $1,092 $S10 Fixed expenses (510) (200) Operating income 5582 $310 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 1,800 1,300 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 Previous Next > Check My Work CBOOK 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 Contribution margin ratio Foto Check My Wor To recast the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products The Conquistador line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the Conquistador line, the overall profitability of the company would increase Step by Step Solution
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