Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $300 (144) $156 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,440 Atlantic Wave Pacific Pounder 0 $400 (148) $252 (172) $80 1,220 1,220 (72) $84 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 Contribution margin ratio East Coast West Coast b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories? The total contribution margin is, for the East Coast, while the contribution margin ratio is Coast. This is because East Coast sells only Atlantic Wave, which have a contribution margin ratio but a contribution margin per unit. In attempting to improve the company's profitability, it is changing the mix of products to the two territories will have much effect. In addition, the variable selling expenses per unit for the may be too high. for West that 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 $300 (144) $156 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 2,440 Atlantic Wave Pacific Pounder 0 $400 (148) $252 (172) $80 1,220 1,220 (72) $84 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 Contribution margin ratio East Coast West Coast b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories? The total contribution margin is, for the East Coast, while the contribution margin ratio is Coast. This is because East Coast sells only Atlantic Wave, which have a contribution margin ratio but a contribution margin per unit. In attempting to improve the company's profitability, it is changing the mix of products to the two territories will have much effect. In addition, the variable selling expenses per unit for the may be too high. for West that
Expert Answer:
Answer rating: 100% (QA)
Step 1 Profitability Analysis It is a component of business resource planning that tells administrat... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
Posted Date:
Students also viewed these accounting questions
-
NOTE:- DON'T COPY AND PASTE OTHER WISE I WILL REPORT YOUR ANSWER AND REQUEST TO TERMINATE YOUR ACCOUNT Discuss the issues associated with implementing the approach of Mr. Tony Hsieh & Mr. Brian...
-
The following information relates to Wellworths Enterprises: 1. Balances on 1 October 2021 Equipment (including computers) at cost price Accumulated depreciation on equipment Bank (debit) Accrued...
-
. . . I have and will report all copy paste spam. 1. Show that Gradient of Kullback-Leibler divergence for t-SNE is given by vf (Z) = 4Z(dia g(A1) - A) . 2. What will happen if P=Q? You may use some...
-
Modify HashST to use a resizing array so that the average length of the list associated with each hash value is between 1 and 8 .
-
Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, and resort area during their summer break. This is an alternative to summer...
-
Use the ijk notation and derive the identity (A X B) x (C X D) = (ABC) C (ABC) D
-
The total material variance can be divided into a material _________variance and a material _________variance.
-
Janes Auto Care is considering the purchase of a new tow truck. The garage doesnt currently have a tow truck, and the $60,000 price tag for a new truck would represent a major expenditure. Jane...
-
Calculate the value of a $40-strike at-the-money European call option maturing in 18 months. The risk-free rate is 4% per annum, with continuous compounding, and the stock's volatility is 50%....
-
If pp annihilation at rest proceeds via S-states, explain why the reaction pp 0 0 is forbidden as a strong or electromagnetic interaction.
-
How would a monopsonist in an imperfectly competitive labor market determine wages and employment? By comparing its demand curve to the demand curves of its competitors, selecting the same number of...
-
Let Y1,...,Yn be a random sample from the following distributions with the unknown parameter(s). Estimate them by maximum likelihood and by the method of moments. fe (y) = 0y01, 0 y 1, 0 > 0
-
Marketing segmentation discussion Companies will often use more than one segmentation factor to divide a market and determine who they are targeting as their primary customer. Identify a product,...
-
On January 2, 2021, Worth Co. issued at par $2,000,000 of 5% convertible bonds. Each $1,000 bond is convertible during 2021. Worth had 200,000 shares of common stock outstanding during 2021. Worth's...
-
Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required...
-
Given an acceleration vector, initial velocity (40, Yo), and initial position (X),Yo), find the velocity and position vectors for t 0. a(t) = (cost, 3 sint), (u,v) = (0,5), (x,y) = (1,0) What is the...
-
. Two bonds have par values of $1,000. One is a 5%, 15-year bond priced to yield 8.0%. The other is a(n) 8.5%, 23-year bond priced to yield 4.5%. Which of these two has the lower price? (Assume...
-
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
-
Frontera Corporation reported the following income statement and comparative balance sheet for the year ended December 31, 2004. Income Statement (for the Year Ended December 31, 2004) (In thousands)...
-
The company you work for has a good return on assets, but inventory turnover and receivables turnover are low for your industry. You also have ongoing cash flow problems. Is there a connection?...
-
Determine whether the rows in Tables 1 through 4 are labeled in years or in periods. Does it make a difference whether they are labeled in years or periods? Why?
-
The Lorenz Model is a simple model for atmospheric convection developed by Edward Lorenz in 1963. The system is given by three equations: \[\begin{aligned} \frac{d x}{d t} & =\sigma(y-x) \\ \frac{d...
-
Show that the system \(x^{\prime}=x-y-x^{3}, y^{\prime}=x+y-y^{3}\), has at least one limit cycle by picking an appropriate \(\psi(x, y)\) in Dulac's Criteria.
-
In Equation (3.153), we saw a linear version of an epidemic model. The commonly used nonlinear SIR model is given by \[\begin{align*} \frac{d S}{d t} & =-\beta S I \\ \frac{d I}{d t} & =\beta S...
Study smarter with the SolutionInn App