Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS),...
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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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Conquistador $6,000 (3,600) $2,400 (900) $1,500 (750) $750 Sales unit volume Hurricane $11,500 (5,750) $5,750 (1,150) $4,600 (1,000) $3,600 Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane 10,000 4,000 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 Sales Variable cost of goods sold ✔ Manufacturing margin ✔ Variable selling expenses ✔ Contribution margin ✔ Contribution margin ratio ✔ Conquistador % Hurricane % 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: Sales price Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Conquistador $6,000 (3,600) $2,400 (900) $1,500 (750) $750 Sales unit volume Hurricane $11,500 (5,750) $5,750 (1,150) $4,600 (1,000) $3,600 Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane 10,000 4,000 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 Sales Variable cost of goods sold ✔ Manufacturing margin ✔ Variable selling expenses ✔ Contribution margin ✔ Contribution margin ratio ✔ Conquistador % Hurricane %
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Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
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