Prepare a contribution margin by product report

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Reference no: EM133101546

Question - 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

$4,800

$3,200

Variable cost of goods sold

(3,020)

(2,140)

Manufacturing margin

$1,780

$1,060

Variable selling expenses

(772)

(516)

Contribution margin

$1,008

$544

Fixed expenses

(470)

(220)

Operating income

$538

$324

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

 

Conquistador

Hurricane

Sales unit volume

3,600

2,600

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

Reference no: EM133101546

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