Contribution Margin by Segment The following information is for Elm Leaf Apparel: Sales volume (units): Product Alpha Product Omega Sales price: East West 5,900 6,000 3,800 6,300 Product Alpha $21 $19 Product Omega $27 $26 Variable cost per unit: Product Alpha Product Omega $13 $13 $16 $16 a. Determine the contribution margin for the East Region and West Region. East Region: $ West Region: b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent. East Region: West Region: % %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Contribution Margin by Segment
The following information is for Elm Leaf Apparel:
Sales volume (units):
Product Alpha
Product Omega
Sales price:
East West
5,900 6,000
3,800 6,300
Product Alpha
$21 $19
Product Omega
$27
$26
Variable cost per unit:
Product Alpha
Product Omega
$13
$13
$16
$16
a. Determine the contribution margin for the East Region and West Region.
East Region:
West Region:
b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.
East Region:
West Region:
%
%
Transcribed Image Text:Contribution Margin by Segment The following information is for Elm Leaf Apparel: Sales volume (units): Product Alpha Product Omega Sales price: East West 5,900 6,000 3,800 6,300 Product Alpha $21 $19 Product Omega $27 $26 Variable cost per unit: Product Alpha Product Omega $13 $13 $16 $16 a. Determine the contribution margin for the East Region and West Region. East Region: West Region: b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent. East Region: West Region: % %
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