Solution-Prepare a contribution margin by product report

Prepare a contribution margin by product report

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Reference no: EM133076346

Question - 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	$5,400	$3,600
Variable cost of goods sold	(3,400)	(2,410)
Manufacturing margin	$2,000	$1,190
Variable selling expenses	(758)	(434)
Contribution margin	$1,242	$756
Fixed expenses	(580)	(300)
Operating income	$662	$456

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

Conquistador Hurricane

Sales unit volume 3,100 2,200

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

Reference no: EM133076346

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Prepare a contribution margin by product report

Reference no: EM133076346

Reference no: EM133076346

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