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Territory and Product Profitability Analysis - ACCOUNTING Territory and Product Profitability Analysis - ACCOUNTING Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures
Territory and Product Profitability Analysis - ACCOUNTING
Territory and Product Profitability Analysis - ACCOUNTING 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 and West. Information about the two surfboards is as follows Atlantic Waves Pacific Pounder Sales price $200 $120 Variable cost of goods sold per unit 150 90 Manufacturing margin per unit $ 50 $ 30 Variable selling expense per unit 34 16 Contribution margin per unit $ 16 $ 14 The sales unit volume for the sales territories and products for the period is as follows: EastWest Atlantic Wave 40,000 25,000 Pacific Pounder 0 25,000 hide Prepare a contribution margin by sales territory report. Calculate 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 West Sales $$ Variable cost of goods soldManufacturing margin $$ Variable selling expenses Contribution margin$ $ Contribution margin ratio % %Step by Step Solution
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