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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 530

Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 530 bikes in each territory.

Per unit West Coast East Coast
Sales price $ 1,300 $ 1,200
Variable cost of goods sold 750 750
Variable selling and administrative expenses 160 30

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?

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