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 Sales price $400 $300 Variable cost of goods sold per unit (148) (147) Manufacturing margin per unit $252 $153 Variable selling expense per unit (180) (75) Contribution margin per unit $72 $78 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,840 1,420 Pacific Pounder 0 1,420 Question Content Area 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. Coast to Coast Surfboards Inc.Contribution Margin by Territory East Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio % %
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 Sales price $400 $300 Variable cost of goods sold per unit (148) (147) Manufacturing margin per unit $252 $153 Variable selling expense per unit (180) (75) Contribution margin per unit $72 $78 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,840 1,420 Pacific Pounder 0 1,420 Question Content Area 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. Coast to Coast Surfboards Inc.Contribution Margin by Territory East Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 | |||
| Sales price | $400 | $300 | ||
| Variable cost of goods sold per unit | (148) | (147) | ||
| Manufacturing margin per unit | $252 | $153 | ||
| Variable selling expense per unit | (180) | (75) | ||
| Contribution margin per unit | $72 | $78 |
The sales unit volume for the territories and products for the period is as follows:
| East Coast | West Coast | ||||
| Atlantic Wave | 2,840 | 1,420 | |||
| Pacific Pounder | 0 | 1,420 |
Question Content Area
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.
| East Coast | West Coast | |
|
Sales
|
||
|
Variable cost of goods sold
|
||
|
Manufacturing margin
|
||
|
Variable selling expenses
|
||
|
Contribution margin
|
||
| Contribution margin ratio | % | % |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education