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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:
Atlantic Wave | Pacific Pounder | |||
Sales price | $300 | $250 | ||
Variable cost of goods sold per unit | (111) | (123) | ||
Manufacturing margin per unit | $189 | $127 | ||
Variable selling expense per unit | (129) | (57) | ||
Contribution margin per unit | $60 | $70 |
The sales unit volume for the territories and products for the period is as follows:
East Coast | West Coast | ||||
Atlantic Wave | 3,240 | 1,620 | |||
Pacific Pounder | 0 | 1,620 |
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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.
East Coast | West Coast | |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesSales | $Sales | $Sales |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesVariable cost of goods sold | Variable cost of goods sold | Variable cost of goods sold |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesManufacturing margin | $Manufacturing margin | $Manufacturing margin |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesVariable selling expenses | Variable selling expenses | Variable selling expenses |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesContribution margin | $Contribution margin | $Contribution margin |
Contribution margin ratio | fill in the blank d20641048fbb001_16% | fill in the blank d20641048fbb001_17% |
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