Safar' File Edit View History Bookm 5 Window Help .0. ED V ', 0 Gv2.cengagenow.com O (D [B + Problem Set: Module 6 eBook Product Protability 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: Conqulstador Hurrlcane Sales price $6,600 $4,000 Variable cost of goods sold (4,160) (2,680) Manufacturing margin $2,440 $1,320 Variable selling expenses (1,185) (760) Contribution margin $1,254 $560 Fixed expenses (590) (220) a Operating income $664 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,400 1,800 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 V J $ Variable cost of goods sold v J : ulu Manufacturing margin v J $ ck My Work ( Previous Next ) Assignment Score: 68.97% All work saved. Submit Assignment for Grading Safar' File Edit View History Bookm 5 Window Help . O 0 ED V ', 0 G v2.cengagenow.com O (D [B + BE (x Problem Set: Module 6 eBook ' .' Operating income $564 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,400 1,800 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 cane Conquistador H Sales V J $ a Variable cost of goods sold v V Manufacturing margin v J :1: Variable selling expenses v \\I U Contribution margin v J $ % % \"LHLlLLlUU llLllElLElU Contribution margin ratio V J Feedback ' V Check My Work To recast the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales. b. What advice would you give to the management of Galaxy Sports Inc. regarding the protability of the two products? The Conquistador ' \\/ line provides the lamest total contribution maroin and the laroest contribution marqin ratio. If the sales mix were shifted more toward the Conquistador ' V line. the overall L ck My Work ( Previous 1 Assignment Score: 68.97% All work saved. M