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	$6,600		$4,000
Variable cost of goods sold	(4,160)		(2,680)
Manufacturing margin	$2,440		$1,320
Variable selling expenses	(1,120)		(760)
Contribution margin	$1,320		$560
Fixed expenses	(620)		(220)
Operating income	$700		$340

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

	Conquistador		Hurricane
Sales unit volume	2,900		2,200

Question Content Area

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

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