Solution-Prepare a contribution margin by product report

Prepare a contribution margin by product report

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Reference no: EM133122988

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	$5,000	$3,200
Variable cost of goods sold	(3,150)	(2,140)
Manufacturing margin	$1,850	$1,060
Variable selling expenses	(1,000)	(548)
Contribution margin	$850	$512
Fixed expenses	(400)	(200)
Operating income	$450	$312

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: EM133122988

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Prepare a contribution margin by product report

Reference no: EM133122988

Reference no: EM133122988

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