Territory and Product Profitability Analysis Pipeline 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: Pacific Pounder Atlantic Wave 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 sales territories and products for the period is as follows: East Coast West Coast 3,500 1,750 1,750 0 Atlantic Wave Pacific Pounder Line Item Description Sales ✓ Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places. Pipeline Surfboards Inc. Contribution Margin by Territory Contribution margin ratio ✓ ✓ ✓ -✓ $ $400 (148) $ $252 (180) $72 East Coast 1,400,000 ✓ $350 (172) % $178 (101) $77 West Coast 1,312,500 ✓ %

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Homework help. Chapter 21 number 7. Need help filling in the missing data. Thank You! 

 

Territory and Product Profitability Analysis
Pipeline 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:
Pacific Pounder
Atlantic Wave
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 sales territories and products for the period is as follows:
East Coast West Coast
3,500
1,750
1,750
Atlantic Wave
Pacific Pounder
Contribution
Line Item Description
Sales
-✓
Variable cost of goods sold
Manufacturing margin
0
a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places.
Pipeline Surfboards Inc.
Variable selling expenses
Contribution margin
Contribution margin ratio
V
✓
✓
$400
(148)
$252
(180)
$72
Margin by Territory
$
$1
East Coast
1,400,000 ✓
%
$
$350
(172)
$178
(101)
$77
$
West Coast
1,312,500 ✓
%
Transcribed Image Text:Territory and Product Profitability Analysis Pipeline 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: Pacific Pounder Atlantic Wave 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 sales territories and products for the period is as follows: East Coast West Coast 3,500 1,750 1,750 Atlantic Wave Pacific Pounder Contribution Line Item Description Sales -✓ Variable cost of goods sold Manufacturing margin 0 a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places. Pipeline Surfboards Inc. Variable selling expenses Contribution margin Contribution margin ratio V ✓ ✓ $400 (148) $252 (180) $72 Margin by Territory $ $1 East Coast 1,400,000 ✓ % $ $350 (172) $178 (101) $77 $ West Coast 1,312,500 ✓ %
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