Contribution Margin by Segment The following information is for Moss Creek Apparel: Sales volume (units): Product Alpha Product Omega Sales price: Product Alpha Product Omega Variable cost per unit: Product Alpha Product Omega East West 9,500 9,500 5,800 9,000 % $17 $23 $10 $14 $16 $21 $10 $14 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:
Contribution Margin by Segment The following information is for Moss Creek Apparel: Sales volume (units): Product Alpha Product Omega Sales price: Product Alpha Product Omega Variable cost per unit: Product Alpha Product Omega East West 9,500 9,500 5,800 9,000 % $17 $23 $10 $14 $16 $21 $10 $14 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Contribution Margin by Segment
The following information is for Moss Creek Apparel:
Sales volume (units):
Product Alpha
Product Omega
Sales price:
Product Alpha
Product Omega
Variable cost per unit:
Product Alpha
Product Omega
East West
%
9,500 9,500
5,800 9,000
%
$17
$23
$10
$14
$16
$21
a. Determine the contribution margin for the East Region and West Region.
East Region: $
West Region: $
$10
$14
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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