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Product Profitability. Analysis Galaxy Sports Inc manufactures and sells two styles of All Terrain Veides (ATV), the Conquistador and Hurricane, from a single manufacturing facility,
Product Profitability. Analysis Galaxy Sports Inc manufactures and sells two styles of All Terrain Veides (ATV), the Conquistador and Hurricane, from a single manufacturing facility, The manufacturina tacility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $5,800 $4,400 Variable cost of goods sold (4,280) (2,950) Manufacturing margin $2,520 $1,450 Variable selling expenses (1,092) (614) Contribution margin $1,428 $836 Fixed expenses (670) (330) Operating Income 3758 $506 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2.300 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 Conquistador Hurricane Sales
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