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	$5,000		$3,200
Variable cost of goods sold	(3,150)		(2,140)
Manufacturing margin	$1,850		$1,060
Variable selling expenses	(900)		(484)
Contribution margin	$950		$576
Fixed expenses	(450)		(230)
Operating income	$500		$346

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

	Conquistador		Hurricane
Sales unit volume	2,900		2,100

Question Content Area

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 blank

	Conquistador	Hurricane
?____________	$_____	$___
?_________	_____	_____
?_________	$___	$___
?__________	____	____
?________	$____	$____
?__________	____%	____%