eBookQuestion Content AreaTerritory and Product Profitability AnalysisCoast 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 WavePacific PounderSales price$350 $300 Variable cost of goods sold per unit(130) (138) Manufacturing margin per unit$220 $162 Variable selling expense per unit(143) (84) Contribution margin per unit$77 $78 The sales unit volume for the territories and products for the period is as follows: East CoastWest CoastAtlantic Wave3,180 1,590 Pacific Pounder0 1,590 Question Content Areaa. 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.Coast to Coast Surfboards Inc.Contribution Margin by Territory East CoastWest Coast $Sales$Sales Variable cost of goods soldVariable cost of goods sold $Manufacturing margin$Manufacturing margin Variable selling expensesVariable selling expenses $Contribution margin$Contribution marginContribution margin ratiofill in the blank 174ad2025fe604a_16%fill in the blank 174ad2025fe604a_17%

Answered: East Coast West Coast $Sales $Sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

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
Sales price	$350		$300
Variable cost of goods sold per unit	(130)		(138)
Manufacturing margin per unit	$220		$162
Variable selling expense per unit	(143)		(84)
Contribution margin per unit	$77		$78

The sales unit volume for the territories and products for the period is as follows:

	East Coast	West Coast
Atlantic Wave	3,180		1,590
Pacific Pounder	0		1,590

Question Content Area

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.

Coast to Coast Surfboards Inc.Contribution Margin by Territory

	East Coast	West Coast
	$Sales	$Sales
	Variable cost of goods sold	Variable cost of goods sold
	$Manufacturing margin	$Manufacturing margin
	Variable selling expenses	Variable selling expenses
	$Contribution margin	$Contribution margin
Contribution margin ratio	fill in the blank 174ad2025fe604a_16%	fill in the blank 174ad2025fe604a_17%