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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 560

Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 560 bikes in each territory.

Per unit West Coast East Coast
Sales price $ 1,800 $ 1,750
Variable cost of goods sold 900 900
Variable selling and administrative expenses 180 80

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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Required A Required B Compute contribution margin (in dollars) for each sales territory. West Coast Sales Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin East Coast Required A Required B Compute contribution margin ratio for each sales territory. Which sales territory (Round your answers to 1 decimal place.) West Coast East Coast Contribution margin ratio % Which sales territory has the better contribution margin ratio? %

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