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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 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 sales territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,960 1,480 Pacific Pounder 0 1,480 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. Pipeline Surfboards Inc. Contribution Margin by Territory Line Item Description East Coast West Coast Sales 1,036,000 962,000 Variable cost of goods sold -384,800 -396,640 Manufacturing margin▾ 651,200 565,360 Variable selling expenses▾ Contribution margin▾ Contribution margin ratio 22 % %

          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:
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 sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave
2,960
1,480
Pacific Pounder
0
1,480
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.
Pipeline Surfboards Inc.
Contribution Margin by Territory
Line Item Description
East Coast
West Coast
Sales
1,036,000
962,000
Variable cost of goods sold
-384,800
-396,640
Manufacturing margin▾
651,200
565,360
Variable selling expenses▾
Contribution margin▾
Contribution margin ratio
22 %
%

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 region 00416

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