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How to calculate profitability analysis?

How to calculate profitability analysis?

FINANCIAL ACCOUNTING
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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How to calculate profitability analysis?

Online teach engagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=Dtrue d Paused 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: Conquistador Hurricane Sales price $4,200 $2,600 Variable cost of goods sold (2,650) (1,740) Manufacturing margin $1,550 $860 Variable selling expenses (794) (444) Contribution margin $756 $416 Fixed expenses (360) (170) Operating income $396 $246 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,800 2,100 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 Previous Next Check My Work 4 more Check My Work uses remaining. 6:33 AM 12/7/2020
Transcribed Image Text:Online teach engagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=Dtrue d Paused 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: Conquistador Hurricane Sales price $4,200 $2,600 Variable cost of goods sold (2,650) (1,740) Manufacturing margin $1,550 $860 Variable selling expenses (794) (444) Contribution margin $756 $416 Fixed expenses (360) (170) Operating income $396 $246 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,800 2,100 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 Previous Next Check My Work 4 more Check My Work uses remaining. 6:33 AM 12/7/2020
MIMO HDMI MON CEYNIRON MTMOAINEMACE FHD IPS Display Up to 2X Faster Wireless У Home CengageNOWv2| Online teach X gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress3Dtrue Paused In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 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 Conquistador Hurricane %24 % b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix line, the overall profitability of the company would increase. The were shifted more toward the Previous Next 6:33 AM Check My Work 4 more Check My Work uses remaining. 12/7/2020 ... %24 %24 %24 %24 II
Transcribed Image Text:MIMO HDMI MON CEYNIRON MTMOAINEMACE FHD IPS Display Up to 2X Faster Wireless У Home CengageNOWv2| Online teach X gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress3Dtrue Paused In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 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 Conquistador Hurricane %24 % b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix line, the overall profitability of the company would increase. The were shifted more toward the Previous Next 6:33 AM Check My Work 4 more Check My Work uses remaining. 12/7/2020 ... %24 %24 %24 %24 II
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