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	$5,800		$3,800
Variable cost of goods sold	(3,650)		(2,550)
Manufacturing margin	$2,150		$1,250
Variable selling expenses	(932)		(604)
Contribution margin	$1,218		$646
Fixed expenses	(570)		(260)
Operating income	$648		$386

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

	Conquistador	Hurricane
Sales unit volume	2,100		1,500

Question

How do you fill in the report to get the contribution margin ratio for each product?

	Conquistador	Hurricane
Sales
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Contribution margin ratio	21%	17%

Answer rating: 100% (QA)

To calculate the contribution margin ratio for each product we need to divide the contribution margi... View the full answer