Answer:
given
Coast to Coast Surfboards Inc.
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
East Coast West Coast
Atlantic Wave 40,000 25,000
Pacific Pounder 0 25,000
<u><em>Calculations</em></u>
Coast to Coast Surfboards Inc.
Contribution Margin by Territory.
Atlantic Wave Pacific Pounder
East Coast West Coast East Coast West Coast
Sales price $200 $120
<u>Units 40,000 25,000 0, 25000</u>
Sales 8000,000 5000,000 000, 3000,000
V. COGS (6000,000) (3750000) 000, (2250000)
MAnufg. Margin 2000,000 1250000 000. 750,000
Var. & Selling Exp. (1360000) (850000) 000. (400,000)
Contribution margin 640,000 400,000 000. 350,000
Contribution Margin Ratio = Contribution Margin/ Sales
CM ratio= 8% 8% 000 . 11.67%
<em>Multiplying the number of units given against each territory with the respective costs gives this income statement.</em>
