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 $2,600 $4,200 (2,650) (1,740) $1,550 $860 (626) (444) $924 (430) $494 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Hurricane Conquistador 2,000 Sales unit volume 1,500 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 Product Conquistador Hurricane % $416 (170) $246 ododdá
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 $2,600 $4,200 (2,650) (1,740) $1,550 $860 (626) (444) $924 (430) $494 Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Hurricane Conquistador 2,000 Sales unit volume 1,500 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 Product Conquistador Hurricane % $416 (170) $246 ododdá
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
$2,600
$4,200
(2,650)
(1,740)
$1,550
Sales price
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Fixed expenses
Operating income
In addition, the following sales unit volume information for the period is as follows:
Conquistador
2,000
Hurricane
1,500
Sales unit volume
Conquistador
(626)
$924
(430)
$494
%
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 Product
Hurricane
$860
(444)
%
$416
(170)
$246](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdde5baf-f321-4ff9-982e-7cffee1a0a71%2F6e9e6234-032e-4160-8085-a4a0a53005c9%2F28xkq1w_processed.png&w=3840&q=75)
Transcribed Image Text: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
$2,600
$4,200
(2,650)
(1,740)
$1,550
Sales price
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Fixed expenses
Operating income
In addition, the following sales unit volume information for the period is as follows:
Conquistador
2,000
Hurricane
1,500
Sales unit volume
Conquistador
(626)
$924
(430)
$494
%
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 Product
Hurricane
$860
(444)
%
$416
(170)
$246
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