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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador Conquistador Hurricane $5,400 $3,400 (3,400) (2,280) $2,000 $1,120 (1,082) (576) $918 $544 (430) (220) $488 $324 Sales ✔ Variable cost of goods sold · ✓ Manufacturing margin ✔ Variable selling expenses ✓ 2,800 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Contribution margin ✔ Contribution margin ratio ✓ Galaxy Sports Inc. Contribution Margin by Product Hurricane Conquistador 2,400 2,000 % Hurricane 1,700 X %

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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador Conquistador Hurricane $5,400 $3,400 (3,400) (2,280) $2,000 $1,120 (1,082) (576) $918 $544 (430) (220) $488 $324 Sales ✔ Variable cost of goods sold · ✓ Manufacturing margin ✔ Variable selling expenses ✓ 2,800 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Contribution margin ✔ Contribution margin ratio ✓ Galaxy Sports Inc. Contribution Margin by Product Hurricane Conquistador 2,400 2,000 % Hurricane 1,700 X %

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.4BPR: Salespersons' report and analysis Pachec Inc. employs seven salespersons to sell and distribute its...

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Salespersons' report and analysis Pachec Inc. employs seven salespersons to sell and distribute its product throughout the slate. Data taken from reports received from the salespersons during the year ended June 30 are as Follows: Instructions 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. 2. Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
Salespersons' report and analysis Walthman Industries Inc. employs seven salespersons to sell and distribute- its product throughout the state. Data taken from reports received from the .salespersons during the year ended December 31 are as follows: Instructions 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. (Round whole percent to one digit after decimal point.) 2. Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
Segment profitability analysis The marketing segment sales for Caterpillar, Inc., for a year follow: In addition assume the following information: A. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round to two decimal places. In addition, calculate the contribution margin ratio for each segment as a percentage, rounded to one decimal place. B. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. (Round whole percents to one decimal place.) C. Use the information in (A) and (B) to interpret the segment performance.
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