Home X D2L 6-1 Problem Set: Module Six - A( X CengageNOWv2 | Online teachin X D21 Variance Analysis - ACC-202-R58 x + C https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false G Problem Set: Module 6 eBook Product Profitability Analysis 1. TMM.07.05 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: 2. EX.07.12.ALGO Conquistador Hurricane 3. EX.07.02.ALGO Sales price $5,600 $3,400 Variable cost of goods sold (3,530) (2,280) 4. EX.07.05.ALGO Manufacturing margin $2,070 $1,120 5. TMM.07.01 Variable selling expenses (782) (440) Contribution margin $1,288 $680 Fixed expenses (610) (270) Operating income $678 $410 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 1,700 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 Sales - V Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio Feedback Check My Work To recast the contribution margin data by product report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales. b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? The Conquistador V line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mix were shifted more toward the line, the overall profitability of the company would increase. Progress: 2/5 items check My Work Previous Next Assignment Score: 27% All work saved. Email Instructor Save and Exit Submit Assignment for Grading