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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 $5,800 $3,800 Variable cost of goods sold (3,650) (2,550) Manufacturing margin $2,150 $1,250 Variable selling expenses (1,106) (642) Contribution margin $1,044 $608 Fixed expenses (490) (240) Operating income $554 $368 k In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador. 3,600 Hurricane 2,500 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 Conquistador . Hurricane Previous Next
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