Territory and Product Profitability AnalysisPipeline 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 PounderSales priceVariable cost of goods sold per unitManufacturing margin per unitVariable selling expense per unitContribution margin per unit$250$200(93)(92)$157$108(112)$45(52)$56The sales unit volume for the sales territories and products for the period is as follows:East Coast West CoastAtlantic WavePacific Pounder2,86001,4301,430a. 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 TerritoryLine Item DescriptionSalesEast CoastWest Coast715,000Variable cost of goods soldManufacturing marginVariable selling expensesContribution marginContribution margin ratio%%

Pipeline Surfboards Inc.Contribution Margin by TerritoryLine Item…

Answered: Territory and Product Profitability…

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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Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit information is available for the two products: Conquistador Hurricane Sales price $4,400 $2,800 Variable cost of goods sold (2,770) (1,880) Manufacturing margin $1,630 $920 Variable selling expenses (706) (444) Contribution margin $924 $476 Fixed expenses (430) (190) Operating income $494 $286 In addition, the following sales unit volume information for the period is as follows: Conquistador Hurricane Sales unit volume 3,600 2,700
TB MC Qu. 3-46 (Algo) The Travel Pro Company sells two kinds... The Travel Pro Company sells two kinds of luggage. The company projected the following cost information for the two products: Rolling Bag 300 162 1,000 Unit selling price Unit variable cost Number of units produced and sold Multiple Choice 3,300 units The company's total fixed costs are expected to be $331,650. Based on this information, what is the combined number of units of the two products that would be required to break even with the projected sales mix? (Do not round your intermediate calculations. Round your final answer to the nearest whole unit.) 3,086 units 3,769 units $ $ None of these is correct. Carry-on Bag $ 150 $ 62 3,000
Question Content Area Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.95 per pound and costs $16.00 per pound to produce. Product D would sell for $36.45 per pound and would require an additional cost of $9.00 per pound to produce. The differential cost of producing Product D is?
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Current Attempt in Progress Bridgeport, Inc. manufactures and sells two products, Standard and Deluxe. Relevant per unit data for each product are given below: Selling price Variable costs Machine hours (a) Product Standard $44 $22 2 Deluxe Contribution margin per unit of limited resource $75 $30 3 Compute the contribution margin per unit of limited resource for each product. $ Standard Product Deluxe
Contribution Margin by Segment The following data are for Cabin Craft Apparel: East West Sales volume (units): Product XX 9,300 10,000 Product YY 6,100 12,900 Sales price: Product XX $18 $20 Product YY $23 $22 Variable cost per unit: Product XX $11 $11 Product YY $14 $14 a. Determine the contribution margin for Product YY.$fill in the blank 1 b. Determine the contribution margin for the West Region.$fill in the blank 2
9
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.
Problem 7-17 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit. Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours $116.00 $ $ Xtreme Batch setups (setups) Product sustaining (number of products) Other Total manufacturing overhead cost 64.00 12.00 1.5 DLHS 29,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Activities and Activity Measures Supporting direct labor (direct labor-hours) Pathfinder $ 80.00 $ 52.00 $ 8.00 1.0 DLHS 76,000 units $ 1,912,000 119,500 DLHS…
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: Average per unit: Sales price Variable cost of goods sold Commission rate Units sold Manufacturing margin ratio Contribution margin ratio Rene % Steve % Northeast Rene Colleen Steve % $15,500 $16,000 $14,000 $18,000 $9,300 $8,000 $8,400 $9,000 8% 12% 10% 36 40% $ 24 50% a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson. Havasu Off-Road Inc. Contribution Margin by Salesperson Paul Southwest Colleen % Paul 40 40% 8% 60 50%
Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market). Variable cost per unit $ 60 $ 44 Fixed costs per unit (based on capacity) Capacity in units $ 4 20,000 Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes. If the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what is Division A's lowest acceptable transfer price if it were to sell 4,000 units to Division B?
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