Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles ( ATVs ) , the
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Question:
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 of capacity. The following perunit information is available for the two products:
Conquistador Hurricane
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 Hurricane
Sales unit volume
Question Content Area
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
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Conquistador Hurricane
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Question Content Area
b What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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