Product Profitability Analysis 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:
In addition, the following sales unit volume information for the
period is as follows:
Question Content Area
a. Prepare a contribution
margin by product report. Compute the contribution margin
ratio for each product as a whole percent.
Contribution marginCost of goods soldDirect laborGross
profitSales
Fixed cost of goods soldFixed selling expensesManufacturing
marginSalesVariable cost of goods sold
Contribution marginCost of goods soldFixed manufacturing
costsGross profitManufacturing margin
Fixed cost of goods soldFixed selling expensesManufacturing
marginSalesVariable selling expenses
Contribution marginCost of goods manufacturedFixed manufacturing
costsFixed salesManufacturing margin
Contribution margin ratioFixed manufacturing costsFixed
salesManufacturing marginVariable cost of goods sold
Question Content Area
b. What advice would you give to the
management of Galaxy Sports Inc. regarding the profitability of the
two products?
Conquistad or Hurricane
Conquistad or Hurricane