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	(920)		(644)
Contribution margin	$1,080		$476
Fixed expenses	(510)		(190)
Operating income	$570		$286

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

	Conquistador		Hurricane
Sales unit volume	2,600		1,800

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

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 (920) (644) Contribution margin $1,080 $476 Fixed expenses (510) (190) Operating income $570 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,600 1,800 1994 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 Variable selling expenses Contribution margin Contribution margin ratio % %