Product Profitability AnalysisGalaxy 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: ConquistadorHurricaneSales price$6,200 $4,000 Variable cost of goods sold(3,910)(2,680) Manufacturing margin$2,290 $1,320 Variable selling expenses(864)(520) Contribution margin$1,426 $800 Fixed expenses(670)(320) Operating income$756 $480 In addition, the following sales unit volume information for the period is as follows: ConquistadorHurricaneSales unit volume2,7001,900 Question Content Areaa. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.Galaxy Sports Inc.Contribution Margin by Productblank ConquistadorHurricane$Sales$$Variable cost of goods sold $Manufacturing margin$$Variable selling expenses $Contribution margin$$Contribution margin ratio%%%

Contribution margin = Sales - Variable cost Contribution margin ratio = Contribution margin / Sales…

Answered: y Sports Inc. manufactures and sells…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

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	Hurricane
Sales price	$6,200	$4,000
Variable cost of goods sold	(3,910)	(2,680)
Manufacturing margin	$2,290	$1,320
Variable selling expenses	(864)	(520)
Contribution margin	$1,426	$800
Fixed expenses	(670)	(320)
Operating income	$756	$480

In addition, the following sales unit volume information for the period is as follows:

	Conquistador	Hurricane
Sales unit volume	2,700	1,900

Question Content Area

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 Productblank

	Conquistador	Hurricane
$Sales	$	$
Variable cost of goods sold
$Manufacturing margin	$	$
Variable selling expenses
$Contribution margin	$	$
Contribution margin ratio%	%	%

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