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 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.
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