Question
Contribution Marginby Segment The following information is for Olivio Coaster Bikes Inc.: North South Sales volume (units): Red Dream 50,000 66,000 Blue Marauder 112,000 140,000
Contribution Marginby Segment
The following information is for Olivio Coaster Bikes Inc.:
| North | South | ||
| Sales volume (units): | |||
| Red Dream | 50,000 | 66,000 | |
| Blue Marauder | 112,000 | 140,000 | |
| Sales price: | |||
| Red Dream | $480 | $500 | |
| Blue Marauder | $560 | $600 | |
| Variable cost per unit: | |||
| Red Dream | $248 | $248 | |
| Blue Marauder | $260 | $260 |
a. Determine the contribution margin for Red Dream. $
b. Determine the contribution margin for the North Region. $
Contribution Marginby 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. $
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
19th Edition
0077303202, 9780077303204
