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1 A East Coast contribution margin, 5640,000 EX 20-13 Territory and product profitability analysis Coast to Coast Surfboards Inc, manufactures and sells two styles of

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1 A East Coast contribution margin, 5640,000 EX 20-13 Territory and product profitability analysis Coast to Coast Surfboards Inc, manufactures and sells two styles of surfboards, Atlantic Wave Obj. 4 and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder Sales price $200 $120 Variable cost of goods sold per unit.. 150 90 Manufacturing margin per unit $ 50 $ 30 Variable selling expense per unit.. 34 16 Contribution margin per unit... $ 16 $ 14 The sales unit volume for the sales territories and products for the period is as follows: East Coast West Coast Atlantic Wave 40,000 25,000 Pacific Pounder 25,000 0 A. 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. B. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories

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