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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:

ConquistadorHurricane
Sales price$5,000$3,200
Variable cost of goods sold(3,150)(2,140)
Manufacturing margin$1,850$1,060
Variable selling expenses(1,000)(548)
Contribution margin$850$512
Fixed expenses(400)(200)
Operating income$450$312

In addition, the following sales unit volume information for the period is as follows:

ConquistadorHurricane
Sales unit volume3,1002,200

a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.

please see attachment for chart!

image text in transcribed
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 0/0 0/0 mm mm

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