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 $6,200 $3,800 Variable cost of goods sold (3,910) (2,550) Manufacturing margin $2,290 $1,250 Variable selling expenses (926) (490) Contribution margin $1,364 $760 Fixed expenses (640) (300) Operating income $724 $460 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 2,700 Hurricane 1,900 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 Manufacturing margin Conquistador Hurricane Previous Next