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Territory and Product Profitability Analysis Coast to Coast Surfboards Inc

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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 $250 $200 Variable cost of goods sold per unit (93) (94) Manufacturing margin per unit $157 $106 Variable selling expense per unit (102) (50) Contribution margin per unit $55 $56 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 2,700 1,350 Pacific Pounder 0 1,350 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 Coast Sales Pacific Pounder 0 1,350 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 Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin Contribution margin ratio % % eBook The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $89,000 22,700 Home Box Office (pay television) Warner Bros. (films, television, and videos) 83,900 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 35% Home Box Office 43% Warner Bros. 53% a. Determine the contribution margin and contribution margin ratio for each segment from the information given. When required, round to the nearest whole millionth (for example, round 5,688.7 to 5,689). Round contribution margin ratio to whole percents for each segment from the information given. Turner Home Box Office Warner Bros. Revenues Variable costs 533 Contribution margin Contribution margin ratio (as a percent) % % %