# How to calculate profitability analysis? Transcribed Image Text: Analysis alaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single anufacturing

How to calculate profitability analysis? Transcribed Image Text: Analysis
alaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single
anufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for
e two products:
Hurricane
ales price
\$4,200
\$2,600
ariable cost of goods sold
(2,650)
(1,740)
anufacturing margin
\$1,550
\$860
ariable selling expenses
(794)
(444)
ontribution margin
\$756
\$416
xed expenses
(360)
(170)
perating income
\$396
\$246
addition, the following sales unit volume information for the period is as follows:
Hurricane
ales unit volume
2,800
2,100
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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eck My Work 4 more Check My Work uses remaining. Transcribed Image Text: In ådditión, the following sales unit volume information for the period is as follows:
Hurricane
Sales unit volume
2,800
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
Hurricane
b. advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?
The
liņe 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.
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