Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane,
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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 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% |
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