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 Sales unit volume Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador 1,800 Hurricane 1,300 Sales Conquistador $4,400 (2,770) $1,630 Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin ✓ Contribution margin ratio 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 ✓ (750) $880 (410) $470 ✓ Hurricane $3,000 (2,010) $990 (510) $480 (190) $290 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 Sales unit volume Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador 1,800 Hurricane 1,300 Sales Conquistador $4,400 (2,770) $1,630 Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin ✓ Contribution margin ratio 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 ✓ (750) $880 (410) $470 ✓ Hurricane $3,000 (2,010) $990 (510) $480 (190) $290 Conquistador % Hurricane $ %

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...

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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 Fixed expenses Operating income Conquistador Hurricane $5,000 $3,200 Sales unit volume (3,150) $1,850 (700) $1,150 (540) $610 2,700 (2,140) $1,060 $ (420) In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane $640 (260) % $380 1,900 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 Line Item Description Conquistador Hurricane $ $ $ % b. What advice would you give to the management of Galaxy…
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 % b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products? The 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.
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. Sales unit volume Fixed expenses Operating income In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane 1,700 Sales ✓ Variable cost of goods sold Manufacturing margin Variable selling expenses 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 Contribution margin Contribution margin ratio Conquistador $6,600 (4,160) $2,440 (1,120) $1,320 ✓ ✓ (620) $700 ✓ 2,400 Hurricane $4,000 (2,680) $1,320…
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: Conquistador Hurricane $2,600 $4,200 (2,650) (1,740) $1,550 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 2,000 Hurricane 1,500 Sales unit volume Conquistador (626) $924 (430) $494 % 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 Hurricane $860 (444) % $416 (170) $246
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 Fixed expenses Operating income Sales unit volume In addition, the following sales unit volume information for the period is as follows: Conquistador $6,400 (4,030) $2,370 (1,026) $1,344 (630) $714 Conquistador $ The 2,600 Galaxy Sports Inc. Contribution Margin by Product would increase. Hurricane $4,000 (2,680) $1,320 a. Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. % Conquistador Hurricane Hurricane $ (600) $720 (290) $430 % 1,900 b. What advice would you give to the management of Galaxy Sports…
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: Conquistador Hurricane Sales price $4,600 $2,800 Variable cost of goods sold (2,900) (1,880) Manufacturing margin $1,700 $920 Variable selling expenses (688) (360) Contribution margin $1,012 $560 Fixed expenses (480) (220) Operating income $532 $340 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,200 1,600 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…
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: 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 3,000 2,100 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…
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: 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 3,000 2,100 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…
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: Conquistador Hurricane Sales price $5,000 $3,200 Variable cost of goods sold (3,150) (2,140) Manufacturing margin $1,850 $1,060 Variable selling expenses (800) (484) Contribution margin $1,050 $576 Fixed expenses (490) (230) Operating income $560 $346 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,200 2,400 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…
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: Conquistador Hurricane Sales price $5,400 $3,200 Variable cost of goods sold (3,400) (2,140) Manufacturing margin $2,000 $1,060 Variable selling expenses (758) (388) Contribution margin $1,242 $672 Fixed expenses (580) (270) Operating income $662 $402 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,000 1,500 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 1.380,000 X Variable cost of goods sold v ৪78.600 X MacBook Air
Product profitability analysisPower Train Sports Inc. manufactures and sells two .styles of All Terrain Vehicles(ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility.The manufacturing facility operates at 100% of capacity. The following per-unitinformation is available for the two products: In addition, the following sales unit volume information for the period is as follows: A. Prepare a contribution margin by product report. Calculate the contributionmargin ratio for each.B. What advice would you give to the management of Power Train Sports Inc.regarding the relative profitability of the two products?
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: Conquistador Hurricane Sales price $5,600 $3,400 Variable cost of goods sold (3,530) (2,280) Manufacturing margin $2,070 $1,120 Variable selling expenses (1,174) (610) Contribution margin $896 $510 Fixed expenses (420) (200) Operating income $476 $310 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 2,100 1,500 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