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) (680) Contribution margin $1,102 $570 Fixed expenses (520) (230) Operating income $582 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700 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

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) (680) Contribution margin $1,102 $570 Fixed expenses (520) (230) Operating income $582 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...

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