Question
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 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:
1 |
| Atlantic Wave | Pacific Pounder |
2 | Sales price | $230.00 | $150.00 |
3 | Variable cost of goods sold per unit | 180.00 | 124.00 |
4 | Manufacturing margin per unit | $50.00 | $26.00 |
5 | Variable selling expense per unit | 35.00 | 18.00 |
6 | Contribution margin per unit | $15.00 | $8.00 |
The sales unit volume for the sales territories and products for the period is as follows:
East Coast | West Coast | |
---|---|---|
Atlantic Wave | 42,000 | 24,000 |
Pacific Pounder | 0 | 24,000 |
Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
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