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 Hurricane. Sales price $5,200 $3,400 Variable cost of goods sold (3,280) (2,280) Manufacturing margini $1,920 $1,120 Variable selling expenses (828) (576) Contribution margin $1,092 $544 Fixed expenses (510) (220) Operating income $582 $324 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 1,000 Hurricane 1,300 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 by Product Sales Variable cost of goods sold Conquistador Hurricane Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio Feedback Check My Work To recast the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales.