Questions: Sales price: 5,600, 3,600 Variable cost of goods sold: (3,530), (2,410) Manufacturing margin: 2,070, 1,190 Variable selling expenses: (782), (650) Contribution margin: 1,288, 540 Fixed expenses: (610), (220) Operating income: 678, 320 Conquistador, Hurricane Sales unit volume: 2,200, 1,700 Prepare a contribution margin by product report. Compute the contribution margin ratio for each product as a whole percent for Galaxy Sports Inc.

To prepare a contribution margin by product report and compute the contribution margin ratio for each product, we need to follow these steps:

1. Calculate the Total Contribution Margin for Each Product:

   • Contribution Margin for Conquistador = Contribution Margin per Unit × Sales Unit Volume
   • Contribution Margin for Hurricane = Contribution Margin per Unit × Sales Unit Volume

2. Compute the Contribution Margin Ratio for Each Product:

   • Contribution Margin Ratio = (Contribution Margin / Sales Price) × 100

Let's perform these calculations:

Conquistador:

• Contribution Margin per Unit = \$1,288
• Sales Unit Volume = 2,200
• Total Contribution Margin = \$1,288 × 2,200 = \$2,833,600

Hurricane:

• Contribution Margin per Unit = \$540
• Sales Unit Volume = 1,700
• Total Contribution Margin = \$540 × 1,700 = \$918,000

Conquistador:

• Sales Price = \$5,600
• Contribution Margin Ratio = (\$1,288 / \$5,600) × 100 = 23%

Hurricane:

• Sales Price = \$3,600
• Contribution Margin Ratio = (\$540 / \$3,600) × 100 = 15%

\[ \begin{array}{|c|c|c|} \hline \text{Line Item Description} & \text{Conquistador} & \text{Hurricane} \\ \hline \text{Total Contribution Margin} & \$2,833,600 & \$918,000 \\ \hline \text{Contribution Margin Ratio} & 23\% & 15\% \\ \hline \end{array} \]

In summary, the total contribution margin for Conquistador is \$2,833,600 with a contribution margin ratio of 23%, and for Hurricane, it is \$918,000 with a contribution margin ratio of 15%.