Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. territory and product profitability analysis pipel

Territory and Product Profitability Analysis Pipeline Surfboards inc, manufactures and sells two styles of surfboards,...

70.2K

Verified Solution

Question

Accounting

image

Territory and Product Profitability Analysis Pipeline Surfboards inc, manufactures and sells two styles of surfboards, Atiantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: The sales unit volume for the sales territories and products for the period is as follows: a. Prepare a contribution margin by sales territory report, Compute the contribution margin ratio for each territory. Round contribution margin ratio answers to two decimal places. Pipeline Surfboards Inc. Cantribution Marain bv Territary b. What advice would you give to the management of Pipeline Surfboards regarding the relative profitability of the two territories? The total contribution margin is contribution margin ratio is Coast sells only Atlantic Wave, which have a 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 high. for the East Coast, while the for West Coast. This is because East contribution margin per that that may be too

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students