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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.

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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. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane. Sales price $5,800 $3,800 Variable cost of goods sold (3,650) (2,550) Manufacturing margin $2,150 $1,250 Variable selling expenses (1,048) (718) Contribution margin $1,102 $532 4 Fixed expenses (520) (210) $582 $322 Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador 3,300 Hurricane 2,500 Sales unit volume 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 As Sales unit volume 3,300 2,500 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 b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? The more toward the Check My Work Austr Naruto Ship... M Assistir Naruto Ship... line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted line, the overall profitability of the company would increase. Previous

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