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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 Sales price $5,600 $3,600 Variable cost of goods sold (3,530) (2,410) Manufacturing margin $2,070 $1,190 Variable selling expenses (838) (434) Contribution margin $1,232 $756 Fixed expenses (580) (300) Operating income $652 $456 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,300 1,600 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 X Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin % % Contribution margin ratio Fondbook
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