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Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 570 bikes in each territory. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B West Coast $ 1,800 830 160 West Coast Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) Contribution margin ratio Which sales territory has the better contribution margin ratio? % East Coast $ 1,720 830 30 East Coast %

Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 570 bikes in each territory. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B West Coast $ 1,800 830 160 West Coast Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) Contribution margin ratio Which sales territory has the better contribution margin ratio? % East Coast $ 1,720 830 30 East Coast %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Big Bikes...

Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 570 bikes in each territory. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B West Coast $ 1,800 830 160 West Coast Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) Contribution margin ratio Which sales territory has the better contribution margin ratio? % East Coast $ 1,720 830 30 East Coast %
Transcribed Image Text:Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 570 bikes in each territory. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B West Coast $ 1,800 830 160 West Coast Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) Contribution margin ratio Which sales territory has the better contribution margin ratio? % East Coast $ 1,720 830 30 East Coast %
Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) West Coast Contribution margin ratio Which sales territory has the better contribution margin ratio? East Coast %
Transcribed Image Text:Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? (Round your answers to 1 decimal place.) West Coast Contribution margin ratio Which sales territory has the better contribution margin ratio? East Coast %
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