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Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility.
Product Profitability Analysis 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 $6,000 (3,780) $2,220 (900) Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses $1,320 (620) $700 Sales unit volume Hurricane $4,000 (2,680) $1,320 Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane 3,100 (680) $640 (260) $380 2,300
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