FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 | $350 | $250 |
Variable cost of goods sold per unit | (130) | (115) |
Manufacturing margin per unit | $220 | $135 |
Variable selling expense per unit | (157) | (70) |
Contribution margin per unit | $63 | $65 |
The sales unit volume for the territories and products for the period is as follows:
East Coast | West coast | |
Atlantic Wave | 2,780 | 1,390 |
Pacific Pounder | 0 | 1390 |
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