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Product Probiny Arslysis o r and e ma t uring facility. The naturing facility operates at 100% of Gract. The following permit Galaxy Sportsm anactures

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Product Probiny Arslysis o r and e ma t uring facility. The naturing facility operates at 100% of Gract. The following permit Galaxy Sportsm anactures and sells two styles of All Terrain Vehicles (ATV), the Cang formation is wat for the two products Conquistador Hurricane $5,000 $11,500 (360) Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution mangin $2,400 (1150) $1.500 $1.500 Opening income Intion, then w e formation for the persis Conquistador Hurricane Sales un volume 10.000 a. Prepare a co on may product Compute the contribution mari for each produ G yors Inc. 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 $6,000 $11,500 Variable cost of goods sold (3,600) (5,750) Manufacturing margin $2,400 $5,750 Variable selling expenses (900) (1,150) Contribution margin $1,500 $4,600 Fixed expenses (750) (1,000) Operating income $750 $3,600 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 10,000 4,000 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 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 lry Product Conquistador Hurricane b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the line, the overall profitability of the company would increase

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