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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.
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 $5,400 $3,400 Sales price (3,400) (2,280) Variable cost of goods sold $2,000 $1,120 Manufacturing margin Variable selling expenses (1,028 (644) $972 $476 Contribution margin Fixed expenses (460) (190) $512 $286 Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,400 1,700 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 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 s Contribution margin ratio % %
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