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Territory and Product Profitability Analysis Pipeline Surfboards Inc. manufactures and sels two styles of surfboards, Atlantic Wave and Pacific Pounder These surfboards are sold
Territory and Product Profitability Analysis Pipeline Surfboards Inc. manufactures and sels 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 $500 $800 Variable cost of goods sold per unit (300) (500) Manufacturing margin per unit $200 $300 Variable selling experse per unit (75) (60) Contribution margin per unt $125 $240 The sales unit volume for the sales territories and products for the period is as follows East Coast West Coast Atlantic Wave 80,000 Pacific Pounder 60,000 The excess of sales over variable costs. a. Prepare a contribution margin by sales temitory report. Compute the contribution margin ratio for each territory. Pipeline Surfboards Inc. Contribution Margin by Territory WortCou
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