a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Roundcontribution margin ratio answers to two decimal places.Pipeline Surfboards Inc.Contribution Margin by TerritoryLine Item DescriptionSalesVariable cost of goods soldManufacturing marginVariable selling expensesContribution marginContribution margin ratioEast Coast%West Coast% Territory and Product Profitability AnalysisPipeline Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards aresold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:Atlantic WavePacific PounderSales priceVariable cost of goods sold per unitManufacturing margin per unitVariable selling expense per unitContribution margin per unit)The sales unit volume for the sales territories and products for the period is as follows:East Coast West Coast2,4601,2301,230Atlantic WavePacific Pounder0Pipeline Surfboards Inc.Contribution Margin by TerritoryLine Item DescriptionSalee$450(167)$283(184)$99a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory. Roundcontribution margin ratio answers to two decimal places.$400(188)$212(100)$112East Coast West Coast

Lets understand the basics.Contribution Margin :— It is the difference between sales revenue and…

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 Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio East Coast % West Coast %

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 Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio East Coast % West Coast %

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

Section: Chapter Questions

Problem 13E

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Sales territory and salesperson profitability analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson. 2. Interpret the report. b. 1. Prepare a contribution margin by territory report. Compute the contribution margin for each territory as a percent, rounded to one decimal place. 2. Interpret the report.
Evaluating selling and administrative cost allocations Gordon Gecco Furniture Company has two major product lines with the following characteristics: Commercial office furniture: Few large orders, little advertising support, shipments in full truckloads, and low handling complexity Home office furniture: Many small orders, large advertising support, shipments in partial truckloads, and high handling complexity The company produced the following profitability report for management: The selling and administrative expenses are allocated to the products on the basis of relative sales dollars. Evaluate the accuracy of this report and recommend an alternative approach.
erritory 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 $400 $350 Variable cost of goods sold per unit (148) (161) Manufacturing margin per unit $252 $189 Variable selling expense per unit (156) (91) Contribution margin per unit $96 $98 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 3,260 1,630 Pacific Pounder 0 1,630 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 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: Line Item Description Atlantic Wave Pacific Pounder Sales price $400 $350 Variable cost of goods sold per unit (148) (165) Manufacturing margin per unit $252 $185 Variable selling expense per unit (180) (101) Contribution margin per unit $72 $84 The sales unit volume for the sales territories and products for the period is as follows: Product East Coast West Coast Atlantic Wave 2,460 1,230 Pacific Pounder 0 1,230 Question Content Area 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.
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 $400 $300 Variable cost of goods sold per unit (148) (147) Manufacturing margin per unit $252 $153 Variable selling expense per unit (180) (75) Contribution margin per unit $72 $78 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,840 1,420 Pacific Pounder 0 1,420 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…
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…
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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 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
Sales territory and salesperson profitability analysis Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the Northeast and South west regions. There are two salespersons assigned to each territory. Highercommission rates go to the most experienced salespersons. The following sales statisticsare available for each salesperson: Northeast Southwest Cassy G. Todd Tim JeffAverage per unit:Sales price . . . . . . . . . . . . . . . . . . . . . . . . . $96,000 $84,000 $108,000 $78,000Variable cost of goods sold . . . . . . . . . . . 57,600 33,600 64,800 31,200Commission rate . . . . . . . . . . . . . . . . . . . . .12% 16% 16% 12%Units sold . . . . . . . . . . . . . . . . . . . . . . . . . . .28 24 24 38Manufacturing margin ratio . . . . . .…
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: Line Item Description NortheastRene NortheastSteve SouthwestColleen SouthwestPaul Average per unit: Sales price $15,500 $16,000 $14,000 $18,000 Variable cost of goods sold $9,300 $8,000 $8,400 $9,000 Commission rate 8% 12% 10% 8% Units sold 36 24 40 60 Manufacturing margin ratio 40% 50% 40% 50% Question Content Area a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson. Havasu Off-Road Inc.Contribution Margin by Salesperson Line Item Description Rene Steve Colleen Paul…