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Product Profitabilty Analysis Gabxy Sports Inc, manufactures and selis two styies of Ait Terrain Vehicies...

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Product Profitabilty Analysis Gabxy Sports Inc, manufactures and selis two styies of Ait Terrain Vehicies (ATVS), the Conquistador and Hurricane, from a single manufacturing facily. The manufacturing faclity operates at 100% of capacty. The following per-unit information is avallable for the two products: In addition, the following soles unit volume information for the period is as follows: a. Prepare a cantribution margin by product report. Compute the contribution margin ratio for each product as a whole percent. Galaxy Sports Inc. Contribution Margin by Product Findies: * Chana u, Whork 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 5 ports Inc, regarding the profitability of the two products? The shifted mare toward the Ine provides the largest total contribution margin and the largest contribution margin ratio if the sales mix were link, the owerall profitabuty of the company wowid increase

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