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 ProductConquistadorHurricaneSales$Variable cost of goods soldManufacturing margin2$Variable selling expensesContribution margin vContribution margin ratioX %X % Product Profitability AnalysisGalaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facilityoperates at 100% of capacity. The following per-unit information is available for the two products:ConquistadorHurricaneSales price$5,600$3,400Variable cost of goods sold(3,530)(2,280)Manufacturing margin$2,070$1,120Variable selling expenses(1,174)(610)Contribution margin$896$510Fixed expenses(420)(200)Operating income$476$310In addition, the following sales unit volume information for the period is as follows:ConquistadorHurricaneSales unit volume2,1001,500a. 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

Contribution Margin = ( Sales - variable expenses ) Contribution Margin ratio = (( Sales - Variable…

Answered: contribution margin ratio

Business

Accounting

contribution margin ratio

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...

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Product cost method of product costing Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Smart Stream desires a profit equal to a 30% return on invested assets of 1,200,000. A. Determine the amount of desired profit from the production and sale of 10,000 cell phones. B. Determine the product cost per unit for the production of 10,000 cell phones. C. Determine the product cost markup percentage for cell phones. D. Determine the selling price of cell phones.
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 $5,600 $3,400 Variable cost of goods sold (3,530) (2,280) Manufacturing margin $2,070 $1,120 Variable selling expenses (782) (644) Contribution margin $1,288 $476 Fixed expenses (610) (190) Operating income $678 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,300 2,400 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…
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 $5,400 $3,200 Variable cost of goods sold (3,400) (2,140) Manufacturing margin $2,000 $1,060 Variable selling expenses (758) (388) Contribution margin $1,242 $672 Fixed expenses (580) (270) Operating income $662 $402 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,000 1,500 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 1.380,000 X Variable cost of goods sold v ৪78.600 X MacBook Air
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 $2,600 $4,200 (2,650) (1,740) $1,550 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: Conquistador 2,000 Hurricane 1,500 Sales unit volume Conquistador (626) $924 (430) $494 % 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 Hurricane $860 (444) % $416 (170) $246
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 $5,000 $3,200 Variable cost of goods sold (3,150) (2,140) Manufacturing margin $1,850 $1,060 Variable selling expenses (800) (484) Contribution margin $1,050 $576 Fixed expenses (490) (230) Operating income $560 $346 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,200 2,400 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…
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 $4,600 $2,800 Variable cost of goods sold (2,900) (1,880) Manufacturing margin $1,700 $920 Variable selling expenses (688) (360) Contribution margin $1,012 $560 Fixed expenses (480) (220) Operating income $532 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 1,600 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…
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 $4,400 $2,800 Variable cost of goods sold (2,770) (1,880) Manufacturing margin $1,630 $920 Variable selling expenses (706) (444) Contribution margin $924 $476 Fixed expenses (430) (190) Operating income $494 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700
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 $4,400 $2,800 Variable cost of goods sold (2,770) (1,880) Manufacturing margin $1,630 $920 Variable selling expenses (706) (444) Contribution margin $924 $476 Fixed expenses (430) (190) Operating income $494 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700
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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Conquistador Hurricane $5,000 $3,200 Sales unit volume (3,150) $1,850 (700) $1,150 (540) $610 2,700 (2,140) $1,060 $ (420) In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $640 (260) % $380 1,900 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 Line Item Description Conquistador Hurricane $ $ $ % b. What advice would you give to the management of Galaxy…
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 $4,400 $3,000 Variable cost of goods sold (2,770) (2,010) Manufacturing margin $1,630 $990 Variable selling expenses (750) (450) Contribution margin $880 $540 Fixed expenses (410) (220) Operating income $470 $320 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 1,500 Question Content Area 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 blank…
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 $6,200 $4,000 Variable cost of goods sold (3,910) (2,680) Manufacturing margin $2,290 $1,320 Variable selling expenses (864) (520) Contribution margin $1,426 $800 Fixed expenses (670) (320) Operating income $756 $480 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,700 1,900 Question Content Area 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 Productblank…
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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income Sales unit volume In addition, the following sales unit volume information for the period is as follows: Conquistador $6,400 (4,030) $2,370 (1,026) $1,344 (630) $714 Conquistador $ The 2,600 Galaxy Sports Inc. Contribution Margin by Product would increase. Hurricane $4,000 (2,680) $1,320 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. % Conquistador Hurricane Hurricane $ (600) $720 (290) $430 % 1,900 b. What advice would you give to the management of Galaxy Sports…