Problem Set: Module 6 1. TMM 07.05 2. EX.07.12 ALGO 3. EX.07.02.ALGO 4. EX.07.05.ALGO 5. TMM.07.01 Progress: 2/5 items ● 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 Vanable selling expenses Contribution margin Fixed expenses Operating Income Sales unit volume Conquistador $4,800 (3,020) $1,780 (724) $1,056 In addition, the following sales unit volume information for the period is as follows: Galaxy Sports Inc. Contribution Margin by Product Check My Work (500) $556 Conquistador Conquistador 3,600 Hurricane $2,800 (1,880) $920 (500) a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. (170) $250 Hurricane Hurricane 2,700 E b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? The g 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. Previous Next > D ?
Problem Set: Module 6 1. TMM 07.05 2. EX.07.12 ALGO 3. EX.07.02.ALGO 4. EX.07.05.ALGO 5. TMM.07.01 Progress: 2/5 items ● 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 Vanable selling expenses Contribution margin Fixed expenses Operating Income Sales unit volume Conquistador $4,800 (3,020) $1,780 (724) $1,056 In addition, the following sales unit volume information for the period is as follows: Galaxy Sports Inc. Contribution Margin by Product Check My Work (500) $556 Conquistador Conquistador 3,600 Hurricane $2,800 (1,880) $920 (500) a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. (170) $250 Hurricane Hurricane 2,700 E b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? The g 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. Previous Next > D ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer all parts
Thank you
Transcribed Image Text:Û
Problem Set: Module 6
1. TMM.07.05
2. EX.07.12.ALGO
3. EX.07.02.ALGO
4. EX.07.05.ALGO
5. TMM.07.01
Progress: 2/5 items
engagenow.com
●
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
Conquistador
$4,800
(3,020)
$1,780
(724)
$1,056
+ 39
(500)
$556
In addition, the following sales unit volume information for the
period is as follows:
Conquistador
3,600
Galaxy Sports Inc.
Contribution Margin by Product
Check My Work
Hurricane
$2,800
(1,680)
$920
(500)
$420
(170)
$230
$2.50
Conquistador Hurricane
a. Prepare a contribution margin by product report. Compute
the contribution margin ratio for each product as a whole
percent.
Hurricane
2,700
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.
Previous Next >
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