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…

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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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Assistance with below please 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 $3,600 Variable cost of goods sold (3,530) (2,410) Manufacturing margin $2,070 $1,190 Variable selling expenses (950) (650) Contribution margin $1,120 $540 Fixed expenses (530) (220) Operating income $590 $320 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 1,600 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…
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the…
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,300.00 3 Variable cost of goods sold 3,255.00 3,400.00 4 Manufacturing margin $2,145.00 $1,900.00 5 Variable selling expenses 1,065.00 946.00 6 Contribution margin $1,080.00 $954.00 7 Fixed expenses 485.00 305.00 8 Income from operations $595.00 $649.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,300 5,150 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
PowerTrain Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,300.00 3 Variable cost of goods sold 3,255.00 3,400.00 4 Manufacturing margin $2,145.00 $1,900.00 5 Variable selling expenses 1,065.00 946.00 6 Contribution margin $1,080.00 $954.00 7 Fixed expenses 485.00 305.00 8 Income from operations $595.00 $649.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,300 5,150 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
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 $5,200 $3,400 Variable cost of goods sold (3,280) (2,280) Manufacturing margin $1,920 $1,120 Variable selling expenses (1,088) (610) Contribution margin $832 $510 Fixed expenses (390) (200) Operating income $442 $310 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,200 2,200 Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquis- tador 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 ... Variable cost of goods sold $ 6,000 (3,600) $2,400 $11,500 (5,750) $ 5,750 (1,150) $ 4,600 (1,000) $ 3,600 In addition, the following sales unit volume information for the period is as follows: Manufacturing margin Variable selling expenses Contribution margin.. Fixed expenses.... Operating income (900) $ 1,500 (750) $ 750 Conquistador Hurricane Sales unit volume 10,000 4,000 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each. b. · What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
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 (874) (680) Contribution margin $1,276 $570 Fixed expenses (600) (230) Operating income $676 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 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 $Sales Variable cost…
Product Profitability Sandford Inc. manufactures lawn mowers and garden tractors. Lawn mowers are relatively simple to produce and are made in large quantities. Garden tractors are customized to individual wholesale customer specifications. The company produces and sells 300,000 lawn mowers and 30,000 garden tractors annually. Revenues and costs incurred for each product are as follows: Revenue Direct material Direct labor ($20 per hour) Overhead ? Manufacturing overhead totals $3,960,000. a. Calculate the profit (loss) in total and per unit for each product if overhead is assigned to product using a per-unit basis. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36). Mowers Tractors Total Profit (loss) in total $ Profit (loss) per unit s Lawn Mowers Garden Tractors $19,500,000 $17,850,000 4,000,000 2,700,000 2,800,000 6,000,000 Profit (loss) in total $ Profit (loss) per unit $ $ 30.33 $ b. Calculate the profit (loss) in total and per unit for each product…
Sheridan Optics manufactures two products: microscopes and telescopes. Information for each product is as follows. Microscopes Telescopes Sales price $ 34 53 Sales volume 406,565 178,500 Variable cost per unit 15 20 Annual traceable fixed expenses $ 3,003,300 $ 3,505,100 Annual allocated common fixed expenses $ 2,009,500 $ 2,006,700 Prepare a segment margin income statement for Sheridan Optics that provides detail on both the product lines and the company as a whole. (If the amount is negative then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Microscopes Telescopes Total LA $ LA $ LA LA