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	$ 1,600	$ 1,500
Variable cost of goods sold	860	860
Variable selling and administrative expenses	180	70

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?

uired A

Required B

Compute contribution margin (in dollars) for each sales territory.

Req A

	West Coast	East Coast
Variable expenses
Contribution margin

Req B

	West Coast		East Coast
Contribution margin ratio		%		%
Which sales territory has the better contribution margin ratio?