Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hy entSess onlocato** Ch 21 Homework eBook Calculator Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards,

image text in transcribed
image text in transcribed
hy entSess onlocato** Ch 21 Homework 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 Sales price $350 $250 Variable cost of goods sold per unit (130) (120) Manufacturing margin per unit $220 $130 Variable selling expense per unit (157) (65) Contribution margin per unit $63 $65 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 3,120 Atlantic Wave Pacific Pounder 1,560 1,560 0 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 Check My Workmore Checy worses remaining Ch 21 Homework ebook Calculator Pacific Pounder 0 1,560 a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each teritory as a whole percent, rounded to two decimal places, if required. Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast 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? The total contribution magnis for the East Coast, while the contribution margin ratio for West Coast. This is because East Coast sells only Atlantic Wave, which have a contribution margin ratio but a contribution maron perunt. In attempting to improve the company's profitability, it is that changing the mix of products to the two territories will have much effect. In addition, the variable selling expenses per unit for the may be too high hy entSess onlocato** Ch 21 Homework 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 Sales price $350 $250 Variable cost of goods sold per unit (130) (120) Manufacturing margin per unit $220 $130 Variable selling expense per unit (157) (65) Contribution margin per unit $63 $65 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 3,120 Atlantic Wave Pacific Pounder 1,560 1,560 0 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 Check My Workmore Checy worses remaining Ch 21 Homework ebook Calculator Pacific Pounder 0 1,560 a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each teritory as a whole percent, rounded to two decimal places, if required. Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast 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? The total contribution magnis for the East Coast, while the contribution margin ratio for West Coast. This is because East Coast sells only Atlantic Wave, which have a contribution margin ratio but a contribution maron perunt. In attempting to improve the company's profitability, it is that changing the mix of products to the two territories will have much effect. In addition, the variable selling expenses per unit for the may be too high

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

Economic Influences On The Development Of Accounting In Firms

Authors: George J. Staubus

1st Edition

0367721325, 9780367721329

More Books

Students also viewed these Accounting questions