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Prepare a contribution margin by product report

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Reference no: EM133011271

Problem - 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) (600)

Contribution margin $1,426 $720

Fixed expenses (670) (290)

Operating income $756 $430

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

Conquistador Hurricane

Sales unit volume 3,000 2,200

Required - Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent.

Reference no: EM133011271

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