5

Contribution Margin by Segment

The following information is for LaPlanche Industries Inc.:

	East		West
Sales volume (units):
Product XX	45,000		38,000
Product YY	60,000		50,000
Sales price:
Product XX	$700		$660
Product YY	$728		$720
Variable cost per unit:
Product XX	$336		$336
Product YY	$360		$360

a. Determine the contribution margin for the Product YY. $

b. Determine the contribution margin for the West Region. $