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 $5,800 $3,600 Variable cost of goods sold (3,650) (2,410) Manufacturing margin $2,150 $1,190 Variable selling expenses (1,164) (686) Contribution margin $986 $504 Fixed expenses (460) (200) $526 $304 Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,900 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.
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 $5,800 $3,600 Variable cost of goods sold (3,650) (2,410) Manufacturing margin $2,150 $1,190 Variable selling expenses (1,164) (686) Contribution margin $986 $504 Fixed expenses (460) (200) $526 $304 Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,900 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.
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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
$5,800
$3,600
Variable cost of goods sold
(3,650)
(2,410)
Manufacturing margin
$2,150
$1,190
Variable selling expenses
(1,164)
(686)
Contribution margin
$986
$504
Fixed expenses
(460)
(200)
$526
$304
Operating income
In addition, the following sales unit volume information for the period is as follows:
Conquistador
Hurricane
Sales unit volume
2,900
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
Cost of goods sold
%24
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