Question
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:
Conquistador | Hurricane | |||
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:
Conquistador | Hurricane | |||
Sales unit volume | 3,100 | 2,200 |
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!
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 mmStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started