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 %

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 ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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