Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show step by step explanation : INFO : Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and

Please show step by step explanation:

INFO:

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) (418)
Contribution margin $756 $442
Fixed expenses (360) (180)
Operating income $396 $262

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

Conquistador Hurricane
Sales unit volume 2,400 1,800

PROBLEM: a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.

Conquistador Hurricane
Sales ? ?
Variable cost of goods sold

?

?

Manufacturing margin ? ?
Variable selling expenses

?

?

Contribution margin ? ?
Contribution margin ratio %

?

?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions

Question

Did the researcher do a dependability audit?

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago