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 $350 $300 (130) (138) $162 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,960 Atlantic Wave Pacific Pounder 0 1,480 1,480 Coast to Coast Surfboards Inc. Contribution Margin by Territory Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio 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. $220 (150) $70 East Coast West Coast % (78) $84 %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
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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
$350
$300
(130)
(138)
$162
Sales price
Variable cost of goods sold per unit
Manufacturing margin per unit
Variable selling expense per unit
Contribution margin per unit
The sales unit volume for the territories and products for the period is as follows:
East Coast West Coast
2,960
Atlantic Wave
Pacific Pounder
0
1,480
1,480
Coast to Coast Surfboards Inc.
Contribution Margin by Territory
Sales
Variable cost of goods sold
Manufacturing margin
Variable selling expenses
Contribution margin
Contribution margin ratio
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.
$220
(150)
$70
East Coast West Coast
%
(78)
$84
%
Transcribed Image Text: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 $350 $300 (130) (138) $162 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,960 Atlantic Wave Pacific Pounder 0 1,480 1,480 Coast to Coast Surfboards Inc. Contribution Margin by Territory Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio 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. $220 (150) $70 East Coast West Coast % (78) $84 %
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