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: Hurricane Conquistador Sales price $6,600 Variable cost of goods sold (4,160) Manufacturing margin $2,440 Variable selling expenses (1,252) Contribution margin $1,188 (560) $628 Sales unit volume 2,300 Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $4,400 (2,950) $1,450 Conquistador (834) $616 % (250) $366 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 1,700 Hurricane %

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
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Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...
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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
Sales price
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Hurricane
Sales unit volume 2,300
$6,600
(4,160)
$2,440
(1,252)
$1,188
(560)
$628
Fixed expenses
Operating income
In addition, the following sales unit volume information for the period is as follows:
Conquistador Hurricane
$4,400
(2,950)
$1,450
Conquistador
(834)
$616
(250)
$366
%
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
1,700
Hurricane
%
Transcribed Image Text: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 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Hurricane Sales unit volume 2,300 $6,600 (4,160) $2,440 (1,252) $1,188 (560) $628 Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $4,400 (2,950) $1,450 Conquistador (834) $616 (250) $366 % 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 1,700 Hurricane %
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