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 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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