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: Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Conquistador Hurricane $4,000 (2,680) $1.320 (4,030) $2,370 (962) $1,400 (660) Operating income 6748 In addition, the following sales unit volume information for the period is as follows: Conquistador 1,500 (640) $500 (270) $410 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 Conquistador Hurricane b. What advice would you give to the management of Galaxy Sports Inc. regarding the
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: Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Conquistador Hurricane $4,000 (2,680) $1.320 (4,030) $2,370 (962) $1,400 (660) Operating income 6748 In addition, the following sales unit volume information for the period is as follows: Conquistador 1,500 (640) $500 (270) $410 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 Conquistador Hurricane b. What advice would you give to the management of Galaxy Sports Inc. regarding the
Chapter1: Financial Statements And Business Decisions
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