Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder $350 $300 (130) (138) $162 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,960 Atlantic Wave Pacific Pounder 0 1,480 1,480 Coast to Coast Surfboards Inc. Contribution Margin by Territory Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required. $220 (150) $70 East Coast West Coast % (78) $84 %

Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder $350 $300 (130) (138) $162 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,960 Atlantic Wave Pacific Pounder 0 1,480 1,480 Coast to Coast Surfboards Inc. Contribution Margin by Territory Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required. $220 (150) $70 East Coast West Coast % (78) $84 %

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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