Question

Territory and Product Profitability Analysis Pipeline Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder Sales price $250 $200 Variable cost of goods sold per unit (93) (96) Manufacturing margin per unit $157 $104 Variable selling expense per unit (112) (48) Contribution margin per unit $45 $56 The sales unit volume for the sales territories and products for the period is as follows: East Coast West Coast Atlantic Wave 3,080 1,540 Pacific Pounder 0 1,540 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 770,000 693,000? Variable cost of goods sold 286,440 147,840 X Manufacturing margin Variable selling expenses 344,960 418,880 X Contribution margin Contribution margin ratio

          Territory and Product Profitability Analysis
Pipeline Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
$250
$200
Variable cost of goods sold per unit
(93)
(96)
Manufacturing margin per unit
$157
$104
Variable selling expense per unit
(112)
(48)
Contribution margin per unit
$45
$56
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave
3,080
1,540
Pacific Pounder
0
1,540
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
770,000
693,000?
Variable cost of goods sold
286,440
147,840 X
Manufacturing margin
Variable selling expenses
344,960
418,880 X
Contribution margin
Contribution margin ratio

Territory and Product Profitability Analysis
Pipeline Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
250200
Variable cost of goods sold per unit
(93)
(96)
Manufacturing margin per unit
157104
Variable selling expense per unit
(112)
(48)
Contribution margin per unit
4556
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave
3,080
1,540
Pacific Pounder
0
1,540
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
770,000
693,000?
Variable cost of goods sold
286,440
147,840 X
Manufacturing margin
Variable selling expenses
344,960
418,880 X
Contribution margin
Contribution margin ratio

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