How to calculate profitability analysis? Online teachengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=Dtrued PausedProduct Profitability AnalysisGalaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a singlemanufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the twoproducts:ConquistadorHurricaneSales price$4,200$2,600Variable cost of goods sold(2,650)(1,740)Manufacturing margin$1,550$860Variable selling expenses(794)(444)Contribution margin$756$416Fixed expenses(360)(170)Operating income$396$246In addition, the following sales unit volume information for the period is as follows:ConquistadorHurricaneSales unit volume2,8002,100a. 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 ProductPreviousNextCheck My Work 4 more Check My Work uses remaining.6:33 AM12/7/2020 MIMOHDMIMON CEYNIRON MTMOAINEMACEFHD IPS Display Up to 2X Faster WirelessУ HomeCengageNOWv2| Online teach Xgagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress3DtruePausedIn addition, the following sales unit volume information for the period is as follows:ConquistadorHurricaneSales unit volume2,100a. 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 ProductConquistadorHurricane%24%b. What advice would you give to the management of Galaxy Sports Inc. regarding the profitability of the two products?line provides the largest total contribution margin and the largest contribution margin ratio. If the sales mixline, the overall profitability of the company would increase.Thewere shifted more toward thePreviousNext6:33 AMCheck My Work 4 more Check My Work uses remaining.12/7/2020...%24%24%24%24II

Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Answered: How to calculate profitability…

Business

Accounting

How to calculate profitability analysis?

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...

See similar textbooks

Similar questions

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?
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,325.00 3 Variable cost of goods sold 3,275.00 3,200.00 4 Manufacturing margin $2,125.00 $2,125.00 5 Variable selling expenses 937.00 1,273.00 6 Contribution margin $1,188.00 $852.00 7 Fixed expenses 475.00 310.00 8 Income from operations $713.00 $542.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,400 5,250 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,325.00 3 Variable cost of goods sold 3,275.00 3,200.00 4 Manufacturing margin $2,125.00 $2,125.00 5 Variable selling expenses 937.00 1,273.00 6 Contribution margin $1,188.00 $852.00 7 Fixed expenses 475.00 310.00 8 Income from operations $713.00 $542.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,400 5,250 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
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…
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,200.00 $5,300.00 3 Variable cost of goods sold 3,240.00 3,450.00 4 Manufacturing margin $1,960.00 $1,850.00 5 Variable selling expenses 712.00 1,108.00 6 Contribution margin $1,248.00 $742.00 7 Fixed expenses 470.00 320.00 8 Income from operations $778.00 $422.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 4,800 4,650 a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the…
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,300.00 3 Variable cost of goods sold 3,255.00 3,400.00 4 Manufacturing margin $2,145.00 $1,900.00 5 Variable selling expenses 1,065.00 946.00 6 Contribution margin $1,080.00 $954.00 7 Fixed expenses 485.00 305.00 8 Income from operations $595.00 $649.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,300 5,150 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
PowerTrain 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-unit information is available for the two products: 1 Mountain Monster Desert Dragon 2 Sales price $5,400.00 $5,300.00 3 Variable cost of goods sold 3,255.00 3,400.00 4 Manufacturing margin $2,145.00 $1,900.00 5 Variable selling expenses 1,065.00 946.00 6 Contribution margin $1,080.00 $954.00 7 Fixed expenses 485.00 305.00 8 Income from operations $595.00 $649.00 In addition, the following sales unit volume information for the period is as follows: Mountain Monster Desert Dragon Sales unit volume 5,300 5,150 Required: a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each.…
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: 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…
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