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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.

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