Sales price per unit: Hub Cap $36 $28 Gas Can $22 $31 The variable cost of goods sold per unit Hub Cap $19 $17 Gas Can $9 $14 Variable selling and administrative per unit Hub Cap $ 5 $ 4 Gas Can $ 3 $2 (a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
Sales price per unit: Hub Cap $36 $28 Gas Can $22 $31 The variable cost of goods sold per unit Hub Cap $19 $17 Gas Can $9 $14 Variable selling and administrative per unit Hub Cap $ 5 $ 4 Gas Can $ 3 $2 (a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data are for Greasy Gary's Grubhouse:
|
West |
East |
|
| Sales volume (units): | ||
| Hub Cap | 14,000 | 9,000 |
| Gas Can | 6,500 | 18,000 |
| Sales price per unit: | ||
| Hub Cap | $36 | $28 |
| Gas Can | $22 | $31 |
| The variable cost of goods sold per unit | ||
| Hub Cap | $19 | $17 |
| Gas Can | $9 | $14 |
| Variable selling and administrative per unit | ||
| Hub Cap | $ 5 | $ 4 |
| Gas Can | $ 3 | $2 |
(a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
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