Prepare a contribution margin by sales territory report

Reference no: EM131989424

Problem

Territory and Product Profitability Analysis

Zen Skateboards, Inc., manufactures and sells two styles of skateboards, Street Machine and Winter Warrior. These skateboards are sold in two regions, Southern Coast and Northern Coast. Information about the two skateboards is as follows:

	Street Machine	Winter Warrior
Sales price	$450	$350
Variable cost of goods sold per unit	167	161
Manufacturing margin per unit	$283	$189
Variable selling expense per unit	166	112
Contribution margin per unit	$117	$77

The sales unit volume for the territories and products for the period is as follows:

	Southern Coast	Northern Coast
Street Machine	2,560	1,280
Winter Warrior	0	1,280

Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required.

Reference no: EM131989424

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