West Coast Corporation The company has two sales divisions in the province, the Island and Mainland Divisions. The company sells two product lines, Seaside and Mountain outdoor clothing. The company's most recent monthly contribution format statement is given below. West Coast Corporation Income Statement For the month ended Nov 30, 2019 $ % Sales 750,000 100% Variable Cost 405,000 54% Contribution Margin 345,000 46% Fixed Costs 275,000 Operating Income 70,000 9% The company's two geographic sales divisions' information is as follows. The sales and variable expense information for the Island division is provided. The remainder of the sales and variable costs are from the Mainland division. The rest of the fixed costs are common to the entire company. Mainland Geographic Market (Divisions) Sales Variable Cost ratio Traceable fixed expenses Island 337,500 50% 110,000 123,750 Required: 1. Prepare a divisional segmented contribution format monthly income statement for West Coast Corporation including percent of sales ratios. The product line breakdown information for Seaside and Mountain products for the Island Division is as follows. The division's total variable costs are entirely from the two product groups: Seaside or Mountain. The remainder of the fixed expenses are common to the Island division. Mountain 216,000 Island Division Sales Variable Cost ratio Traceable fixed expenses Seaside 121,500 40% 25,000 35,000 2. Prepare a product line segmented contribution format monthly income statement for the Island Division including percent of sales ratios. 3. Which division is more profitable? Explain why? 4. Which product group should Island divisional management focus on increasing the sales of and why? Attach File Browse My Computer Browse Content Collection