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 In addition, the following sales unit volume information for the period is as follows: Sales unit volume Conquistador Conquistador Hurricane $5,400 $3,400 (3,400) (2,280) $2,000 $1,120 (1,082) (576) $918 $544 (430) (220) $488 $324 Sales ✔ Variable cost of goods sold · ✓ Manufacturing margin ✔ Variable selling expenses ✓ 2,800 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Contribution margin ✔ Contribution margin ratio ✓ Galaxy Sports Inc. Contribution Margin by Product Hurricane Conquistador 2,400 2,000 % Hurricane 1,700 X %

Financial And Managerial Accounting
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Chapter21: 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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8:20
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:
Sales ✓
Variable cost of goods sold ✓
Manufacturing margin
Variable selling expenses
Contribution margin ✔
Contribution margin ratio •
AA
Conquistador
$5,400
(3,400)
$2,000
(1,082)
$918
(430)
$488
a. Prepare a contribution margin by product report.
Compute the contribution margin ratio for each product as
a whole percent.
Conquistador
Galaxy Sports Inc.
Contribution Margin by Product
Feedback
Check My Work
2,800
Hurricane
$3,400
(2,280)
$1,120
(576)
$544
(220)
$324
Hurricane
2,000
Conquistador
2,400 X
%
LTE
$
Hurricane
1,700 X
%
To recast the contribution margin data by product
report, multiply the sales volume by each per unit
amount. To calculate the contribution margin ratio,
divide the contribution margin by sales.
v2.cengagenow.com
?
Transcribed Image Text:8:20 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: Sales ✓ Variable cost of goods sold ✓ Manufacturing margin Variable selling expenses Contribution margin ✔ Contribution margin ratio • AA Conquistador $5,400 (3,400) $2,000 (1,082) $918 (430) $488 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Conquistador Galaxy Sports Inc. Contribution Margin by Product Feedback Check My Work 2,800 Hurricane $3,400 (2,280) $1,120 (576) $544 (220) $324 Hurricane 2,000 Conquistador 2,400 X % LTE $ Hurricane 1,700 X % To recast the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales. v2.cengagenow.com ?
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