Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles...
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Accounting
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
$4,200
$2,800
Variable cost of goods sold
(2,650)
(1,880)
Manufacturing margin
$1,550
$920
Variable selling expenses
(626)
(332)
Contribution margin
$924
$588
Fixed expenses
(430)
(240)
Operating income
$494
$348
In addition, the following sales unit volume information for the period is as follows:
Conquistador
Hurricane
Sales unit volume
2,900
2,100
Question Content Area
a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
Conquistador
Hurricane
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