Question

The following data are for Cabin Craft Apparel:

	East	West
Sales volume (units):
Product XX	6,300	5,000
Product YY	3,400	6,200
Sales price:
Product XX	$21	$22
Product YY	$27	$28
Variable cost per unit:
Product XX	$13	$13
Product YY	$16	$16

a. Determine the contribution margin for Product YY.
$

b. Determine the contribution margin for the West Region.
$

Answer 1

Contribution Margin for Product YY	East	West
Sales Volume	3400	6200
Saes Price Per Unit	27	28
Total Sales
Less: Variable Costs	16	16
Contribution Margin Per Unit	11	12
Total Contribution Margin $	37400	74400
Contribution Margin for West Region	Product XX	Product YY
Sales Volume	5000	6200
Saes Price Per Unit	22	28
Total Sales
Less: Variable Costs	13	16
Contribution Margin Per Unit	9	12
Total Contribution Margin $	45000	74400