Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

eBook Calculator Territory and Product Profitability Analysis Coast to Coast Surfboards Inc, manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These

image text in transcribed
image text in transcribed
eBook Calculator Territory and Product Profitability Analysis 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 $450 $400 (167) (188) Sales price Variable cost of goods sold per unit Manufacturing margin per unit $283 $212 (100) (175) Variable selling expense per unit $108 $112 Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,680 1,340 Atlantic Wave Pacific Pounder 0 1,340 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. Coast to Coast Surfboards Inc. Contribution Margin by Territory 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. Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast Sales 1,206,000 1.139.000 Variable cost of goods sold 447560 475.700 758440 663.300 Manufacturing margin Variable selling expenses Contribution margin 469.000 368,500 289440 294.800 24% % Contribution margin ratio b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Steinbart Romney B.

9th International Edition

0470409460, 978-0470409466

More Books

Students also viewed these Accounting questions

Question

Know how to create a position description

Answered: 1 week ago