Question
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 % | ? | ? |
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