Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two...




Territory and Product Profitability Analysis


Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:














































Atlantic Wave

Pacific Pounder
Sales price$400$300
Variable cost of goods sold per unit(148)(147)
Manufacturing margin per unit$252$153
Variable selling expense per unit(180)(75)
Contribution margin per unit$72$78

The sales unit volume for the territories and products for the period is as follows:



























East Coast

West Coast
Atlantic Wave2,8401,420
Pacific Pounder01,420




Question Content Area




a.Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent,rounded to two decimal places, if required.



Coast to Coast Surfboards Inc.Contribution Margin by Territory






































East CoastWest Coast

Sales


Variable cost of goods sold


Manufacturing margin


Variable selling expenses


Contribution margin

Contribution margin ratio%%



Jun 10, 2022
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