Question: Contribution Margin by Segment The following information is for Olivio Coaster Bikes Inc.: North South Sales volume (units): Red Dream 50,000 66,000 Blue Marauder 112,000
Contribution Margin by Segment
The following information is for Olivio Coaster Bikes Inc.:
| North | South | ||
| Sales volume (units): | |||
| Red Dream | 50,000 | 66,000 | |
| Blue Marauder | 112,000 | 140,000 | |
| Sales price: | |||
| Red Dream | $480 | $500 | |
| Blue Marauder | $560 | $600 | |
| Variable cost per unit: | |||
| Red Dream | $248 | $248 | |
| Blue Marauder | $260 | $260 |
a. Determine the contribution margin for Red Dream. $
b. Determine the contribution margin for the North Region. $
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