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 $3,200 Variable cost of goods sold (3,280) (2,140) Manufacturing margin $1,920 $1,060 Variable selling expenses (724) (420) Contribution margin $1,196 $640 Fixed expenses (560) (260) Operating income $636 $380 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,600 a. 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 $3,200 Variable cost of goods sold (3,280) (2,140) Manufacturing margin $1,920 $1,060 Variable selling expenses (724) (420) Contribution margin $1,196 $640 Fixed expenses (560) (260) Operating income $636 $380 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,600 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
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...
Related questions
Question
Please help. Thanks!
![Conquistador
Hurricane
%
b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
The
line provides the largest total contribution margin and the largest contribution margin ratio. If the
sales mix were shifted more toward the
line, the overall profitability of the company would increase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd38182f4-038d-4a39-9ba0-300bab26f72a%2Fd877a989-08fc-4728-97d5-d43aa6c74112%2F5lmaca_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Conquistador
Hurricane
%
b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
The
line provides the largest total contribution margin and the largest contribution margin ratio. If the
sales mix were shifted more toward the
line, the overall profitability of the company would increase.
![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
$3,200
Variable cost of goods sold
(3,280)
(2,140)
Manufacturing margin
$1,920
$1,060
Variable selling expenses
(724)
(420)
Contribution margin
$1,196
$640
Fixed expenses
(560)
(260)
Operating income
$636
$380
|In addition, the following sales unit volume information for the period is as follows:
Conquistador
Hurricane
Sales unit volume
3,600
2,600
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd38182f4-038d-4a39-9ba0-300bab26f72a%2Fd877a989-08fc-4728-97d5-d43aa6c74112%2Fxu95ok6_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$3,200
Variable cost of goods sold
(3,280)
(2,140)
Manufacturing margin
$1,920
$1,060
Variable selling expenses
(724)
(420)
Contribution margin
$1,196
$640
Fixed expenses
(560)
(260)
Operating income
$636
$380
|In addition, the following sales unit volume information for the period is as follows:
Conquistador
Hurricane
Sales unit volume
3,600
2,600
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning