The following data are for Elm Leaf Apparel: East West Sales volume (units): Product XX 5,000 4,600 Product YY 4,600 9,300 Sales price: Product XX $12 $13 Product YY $16 $17 Variable cost per unit: Product XX $7 $7 Product YY $10 $10 a. Determine the contribution margin for Product YY. $ b. Determine the contribution margin for the West Region.
The following data are for Elm Leaf Apparel: East West Sales volume (units): Product XX 5,000 4,600 Product YY 4,600 9,300 Sales price: Product XX $12 $13 Product YY $16 $17 Variable cost per unit: Product XX $7 $7 Product YY $10 $10 a. Determine the contribution margin for Product YY. $ b. Determine the contribution margin for the West Region.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Contribution Margin by Segment
The following data are for Elm Leaf Apparel:
| East | West | |
| Sales volume (units): | ||
| Product XX | 5,000 | 4,600 |
| Product YY | 4,600 | 9,300 |
| Sales price: | ||
| Product XX | $12 | $13 |
| Product YY | $16 | $17 |
| Variable cost per unit: | ||
| Product XX | $7 | $7 |
| Product YY | $10 | $10 |
a. Determine the contribution margin for Product YY.
$
b. Determine the contribution margin for the West Region.
$
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