Assignment
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.
Contribution Margin by Segment
The following information is for LaPlanche Industries Inc.:
|
|
East
|
West
|
|
Sales volume (units):
|
|
|
|
Product XX
|
45,000
|
38,000
|
|
Product YY
|
60,000
|
50,000
|
|
Sales price:
|
|
|
|
Product XX
|
$700
|
$660
|
|
Product YY
|
$728
|
$720
|
|
Variable cost per unit:
|
|
|
|
Product XX
|
$336
|
$336
|
|
Product YY
|
$360
|
$360
|
a. Determine the contribution margin for the Product YY.
b. Determine the contribution margin for the West Region.