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 $$4,600$ $$2,800$

Variable cost of goods sold $(2,900)(1,880)$

Manufacturing margin $$1,700$ $$920$

Variable selling expenses $(964)(500)$

Contribution margin $$736$ $$420$

Fixed expenses $(350)(170)$

Operating income $$386$ $$250$

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

Conquistador Hurricane

Sales unit volume $3,0002,200$