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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
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 $4,200 $2,600 Variable cost of goods sold (2,650) (1,740) Manufacturing margin $1,550 $860 Variable selling expenses (668) (496) Contribution margin i $882 $364 Fixed expenses (410) (150) Operating income $472 $214 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador 3,500 Hurricane 2,600 a Pranara a montribution margin hy nenduct report, Compute the contribution margin ratio for each product as a whole percent.
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