Territory and Product Profitability Analysis Pipeline 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: Line Item Description Atlantic Wave Pacific Pounder Sales price $400 $350 Variable cost of goods sold per unit (148) (165) Manufacturing margin per unit $252 $185 Variable selling expense per unit (180) (101) Contribution margin per unit $72 $84 The sales unit volume for the sales territories and products for the period is as follows: Product East Coast West Coast Atlantic Wave 2,460 1,230 Pacific Pounder 0 1,230 Question Content Area a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places.

Territory and Product Profitability Analysis Pipeline 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: Line Item Description Atlantic Wave Pacific Pounder Sales price $400 $350 Variable cost of goods sold per unit (148) (165) Manufacturing margin per unit $252 $185 Variable selling expense per unit (180) (101) Contribution margin per unit $72 $84 The sales unit volume for the sales territories and products for the period is as follows: Product East Coast West Coast Atlantic Wave 2,460 1,230 Pacific Pounder 0 1,230 Question Content Area a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places.

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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Line Item Description	Atlantic Wave	Pacific Pounder
Sales price	$400	$350
Variable cost of goods sold per unit	(148)	(165)
Manufacturing margin per unit	$252	$185
Variable selling expense per unit	(180)	(101)
Contribution margin per unit	$72	$84

Product	East Coast	West Coast
Atlantic Wave	2,460	1,230
Pacific Pounder	0	1,230

Question Content Area

a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places.

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