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 Wave 2,840 1,420 Pacific Pounder 0 1,420 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 Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio % %
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 Wave 2,840 1,420 Pacific Pounder 0 1,420 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 Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio % %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 13E
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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 Wave | 2,840 | 1,420 | |||
| Pacific Pounder | 0 | 1,420 |
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.
| East Coast | West Coast | |
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Sales
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Variable cost of goods sold
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Manufacturing margin
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Variable selling expenses
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Contribution margin
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| Contribution margin ratio | % | % |
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