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Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold
Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 500 bikes in each territory. Per unit Sales price Variable cost of goods sold Variable selling and administrative expenses. West Coast $ 1,000 540 East Coast $ 960 540 120 60 a. Compute contribution margin (in dollars) for each sales territory. b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio? Complete this question by entering your answers in the tabs below. Required A Required B Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin (Round your answers to 1 decimal place.) West Coast Contribution margin ratio 34.0 % East Coast 37.5% Which sales territory has the better contribution margin ratio? < Required A Required B
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