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Territory and Product Profitability Analysis Pipeline Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in
Territory and Product Profitability Analysis
Pipeline 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:
Line Item Description | Atlantic Wave | Pacific Pounder |
---|---|---|
Sales price | $450 | $350 |
Variable cost of goods sold per unit | (167) | (161) |
Manufacturing margin per unit | $283 | $189 |
Variable selling expense per unit | (202) | (91) |
Contribution margin per unit | $81 | $98 |
The sales unit volume for the sales territories and products for the period is as follows:
Product | East Coast | West Coast |
---|---|---|
Atlantic Wave | 3,100 | 1,550 |
Pacific Pounder | 0 | 1,550 |
Question Content Area
a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places.
Line Item Description | East Coast | West Coast |
---|---|---|
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expenses | $- Select - | $- Select - |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expenses | - Select - | - Select - |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expenses | $- Select - | $- Select - |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expenses | - Select - | - Select - |
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expenses | $- Select - | $- Select - |
Contribution margin ratio | Contribution margin ratio% | Contribution margin ratio% |
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