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 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Big Bikes...
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
%
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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