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 $4,800 $3,200 Variable cost of goods sold (3,020) (2,140) Manufacturing margin $1,780 $1,060 Variable selling expenses (772) (484) Contribution margin $1,008 $576 Fixed expenses (470) (230) Operating income 5538 $346 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,000 1,400 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 Variable cost of goods sold Manufacturing margin Conquistador 2,000 Hurricane 1,400 Sales unit volume 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 Variable cost of poods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products The Conquistador ne provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the Conguistador line, the overall profitability of the company would increase