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:

Problem Set: Module 6 eBook Conquistador Hurricane Sales price $4,800 $3,000 Variable cost of goods sold (3,020) (2,010) Manufacturing margin $1,780 $990 Variable selling expenses (676) (480) Contribution margin $1,104 $510 Fixed expenses (520) 200) Operating income $584 $31 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,200 2,200 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 % Check My Work Previous Assignment Score: 62% All work saved. Email Instructor Save and Exit Submit Assignment for Grading