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 $6,600 Variable cost of goods sold (4,160) Manufacturing margin $2,440 Variable selling expenses Contribution margin Fixed expenses (1,252) $1,188 (560) Operating income $628 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,400 Question Content Area Conquistador Hurricane Sales a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Variable cost of goods sold Manufacturing margin Variable selling expenses Galaxy Sports Inc. Contribution Margin by Product Contribution margin Contribution margin ratio 1,700 $4,000 (2,680) $1,320 (760) $560 (220) $340 Conquistador Hurricane
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 $6,600 Variable cost of goods sold (4,160) Manufacturing margin $2,440 Variable selling expenses Contribution margin Fixed expenses (1,252) $1,188 (560) Operating income $628 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,400 Question Content Area Conquistador Hurricane Sales a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Variable cost of goods sold Manufacturing margin Variable selling expenses Galaxy Sports Inc. Contribution Margin by Product Contribution margin Contribution margin ratio 1,700 $4,000 (2,680) $1,320 (760) $560 (220) $340 Conquistador Hurricane
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:
Sales price
$6,600
Variable cost of goods sold (4,160)
Manufacturing margin
$2,440
Variable selling expenses (1,252)
Contribution margin
$1,188
Fixed expenses
Sales unit volume 2,400
Question Content Area
(560)
Operating income
$628
In addition, the following sales unit volume information for the period is as follows:
Conquistador Hurricane
Conquistador Hurricane
Galaxy Sports Inc.
Contribution Margin by Product
Sales
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Contribution margin ratio
a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
$4,000
(2,680)
$1,320
1,700
Conquistador
(760)
$560
(220)
$340
Hurricane](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F323dcf93-d162-453c-b124-a75b72c955f2%2Fe538b767-b1fb-403b-9801-34a03025b2df%2F8e8wp9_processed.jpeg&w=3840&q=75)
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:
Sales price
$6,600
Variable cost of goods sold (4,160)
Manufacturing margin
$2,440
Variable selling expenses (1,252)
Contribution margin
$1,188
Fixed expenses
Sales unit volume 2,400
Question Content Area
(560)
Operating income
$628
In addition, the following sales unit volume information for the period is as follows:
Conquistador Hurricane
Conquistador Hurricane
Galaxy Sports Inc.
Contribution Margin by Product
Sales
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Contribution margin ratio
a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.
$4,000
(2,680)
$1,320
1,700
Conquistador
(760)
$560
(220)
$340
Hurricane
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