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 (932) (604) Contribution margin $1,218 $646 Fixed expenses (570) (260) Operating income $648 $386 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,000 2,100 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 Sale $ $ Variable cost of goods sold ________ ________ Manufacturing margin $____ $_____ Variable selling expenses $ $ Contribution margin $_____
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 | (932) | (604) | ||
| Contribution margin | $1,218 | $646 | ||
| Fixed expenses | (570) | (260) | ||
| Operating income | $648 | $386 |
In addition, the following sales unit volume information for the period is as follows:
| Conquistador | Hurricane | |||
| Sales unit volume | 3,000 | 2,100 |
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
Sale $ $Manufacturing margin $____ $_____
Variable selling expenses $ $
Contribution margin $_____ $________
Contribution margin ratio % %
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