Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurri manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two Conquistador Hurricane Sales price $5,400 $3,600 Variable cost of goods sold (3,400) (2,410) Manufacturing margin $2,000 $1,190 Variable selling expenses (758) (398) Contribution margin $1,242 $792 Fixed expenses (580) (320) Operating income $662 $472 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,800 Hurricane 2,000 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane Sales 5,400 X 3,600 X Variable cost of goods sold Manufacturing margin 2,000 X 1,190 X Check My Work All work saved. Email Instructor eBook Sales unit volume 2,800 2,000 a. Prepare a contribution margin by product report. Compute the contribution margin ratio i Galaxy Sports Inc. Contribution Margin by Product Conquistador Hurricane Sales 5,400 X 3,600 X Variable cost of goods sold Manufacturing margin 2,000 X 1,190 X Variable selling expenses Contribution margin Contribution margin ratio 23 % 22 % Feedback Check My Work To recast the contribution margin data by product report, multiply the sales volume by each p the contribution margin by sales. b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of t The Conquistador Conquistador line provides the largest total contribution margin and the largest contrib line, the overall profitability of the company would increase. Feedback Check My Work