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:

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 $5,400 $3,400 Variable cost of goods sold (3,400) (2,280) Manufacturing margin $2,000 $1,120 Variable selling expenses (1,136) (644) Contribution margin $864 $476 Fixed expenses (410) (190) Operating income $454 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 1,500 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 Sales v Variable cost of goods sold v Manufacturing margin v Variable selling expenses Contribution margin v Contribution margin ratio v