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	$5,200		$3,400
Variable cost of goods sold	(3,280)		(2,280)
Manufacturing margin	$1,920		$1,120
Variable selling expenses	(724)		(576)
Contribution margin	$1,196		$544
Fixed expenses	(560)		(220)
Operating income	$636		$324

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

	Conquistador	Hurricane
Sales unit volume	1,900		1,400

Question Content Area

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

	Conquistador	Hurricane
sales
variable cost of goods sold
manufacturing margin
variable selling expenses
Contribution margin
contribution margin ratio %