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 $350 $250 Variable cost of goods sold per unit (130) (115) Manufacturing margin per unit $220 $135 Variable selling expense per unit (157) (70) Contribution margin per unit $63 $65 The sales unit volume for the territories and products for the period is as follows: East Coast West coast Atlantic Wave 2,780 1,390 Pacific Pounder 0 1390
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 $350 $250 Variable cost of goods sold per unit (130) (115) Manufacturing margin per unit $220 $135 Variable selling expense per unit (157) (70) Contribution margin per unit $63 $65 The sales unit volume for the territories and products for the period is as follows: East Coast West coast Atlantic Wave 2,780 1,390 Pacific Pounder 0 1390
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
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 | $350 | $250 |
| Variable cost of goods sold per unit | (130) | (115) |
| Manufacturing margin per unit | $220 | $135 |
| Variable selling expense per unit | (157) | (70) |
| Contribution margin per unit | $63 | $65 |
The sales unit volume for the territories and products for the period is as follows:
| East Coast | West coast | |
| Atlantic Wave | 2,780 | 1,390 |
| Pacific Pounder | 0 | 1390 |
Transcribed Image Text: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
$
$1
Contribution margin ratio
%
%
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