) A firm makes & sells bikes & boards operating in north and south regions. Bikes Boards Sales price 170 150 VCOGS 120 110 Margin 50 40 VSGA 35 14 CM per unit 15 26 Unit Sales by region and product: North South Bikes 3000 2500 Boards 0 2200 Prepare a contribution margin report by sales region showing CM ratios.

) A firm makes & sells bikes & boards operating in north and south regions. Bikes Boards Sales price 170 150 VCOGS 120 110 Margin 50 40 VSGA 35 14 CM per unit 15 26 Unit Sales by region and product: North South Bikes 3000 2500 Boards 0 2200 Prepare a contribution margin report by sales region showing CM ratios.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of Model 202. Sales and cost information for the two products is shown. What is the contribution margin for a composite unit based on the sales mix? $14 $21 $35 $56
The following data are for Greasy Gary's Grubhouse: West East Sales volume (units): Hub Cap 14,000 9,000 Gas Can 6,500 18,000 Sales price per unit: Hub Cap $36 $28 Gas Can $22 $31 The variable cost of goods sold per unit Hub Cap $19 $17 Gas Can $9 $14 Variable selling and administrative per unit Hub Cap $ 5 $ 4 Gas Can $ 3 $2 (a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
The following information is for LaPlanche Industries Inc.: East West Sales volume (units): Product XX 45,000 38,000 Product YY 60,000 50,000 Sales price: Product XX $700 $660 Product YY $728 $720 Variable cost per unit: Product XX $336 $336 Product YY $360 $360 a. Determine the contribution margin for the Product YY.$ b. Determine the contribution margin for the West Region.
Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit. Sales volume (units) 4,000 5,000 Cost of sales P383,600 P479,500 SGA costs 124,400 136,000 The best estimate of the total contribution margin when 4,300 units are sold is: (show formula and solution) b. P162,110 c. P28,380 a. P112,230 d. P45,150
Contribution Margin by Segment The following data are for Cabin Craft Apparel: East West Sales volume (units): Product XX 9,300 10,000 Product YY 6,100 12,900 Sales price: Product XX $18 $20 Product YY $23 $22 Variable cost per unit: Product XX $11 $11 Product YY $14 $14 a. Determine the contribution margin for Product YY.$fill in the blank 1 b. Determine the contribution margin for the West Region.$fill in the blank 2
Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.
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 $200 $120 Variable cost of goods sold per unit (150) (90) Manufacturing margin per unit $50 $30 Variable selling expense per unit (34) (16) Contribution margin per unit $16 $14 The sales unit volume for the sales territories and products for the period is as follows: East Coast West Coast Atlantic Wave 40,000 25,000 Pacific Pounder 0 25,000 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…
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 $250 Variable cost of goods sold per unit (130) (115) Manufacturing margin per unit $220 $135 Variable selling expense per unit (157) (70) Contribution margin per unit $63 $65 The sales unit volume for the territories and products for the period is as follows: East Coast West coast Atlantic Wave 2,780 1,390 Pacific Pounder 0 1390
Bonita Industries has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Bonita incurs $6012500 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The break-even point in dollars is $15031250. $2224625. $13982558. $16250000.
The Lyn Division of Rosal Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Mel Division. The following data have been gathered for the coming period: Lyn Division: Capacity 100,000 board feet Price per board foot P4.00 Variable production cost per board foot P2.00 Variable selling cost per board foot P0.70 Mel Division: Board feet needed 40,000 Outside price paid per board foot P3.50 If the Lyn Division sells to the Mel Division, P0.40 per board foot can be saved in shipping costs. If Lyn Division has sufficient excess capacity to fulfill the Mel Division’s needs, what will be the effect on the…
The Lyn Division of Rosal Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Mel Division. The following data have been gathered for the coming period: Lyn Division: Capacity 100,000 board feet Price per board foot P4.00 Variable production cost per board foot P2.00 Variable selling cost per board foot P0.70 Mel Division: Board feet needed 40,000 Outside price paid per board foot P3.50 If the Lyn Division sells to the Mel Division, P0.40 per board foot can be saved in shipping costs. If current outside sales are 70,000 board feet, what is the minimum transfer price that the Lyn Division could…