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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 540

Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year follows. The company sold 540 bikes in each territory.

Per unit West Coast East Coast
Sales price $ 1,400 $ 1,300
Variable cost of goods sold 820 820
Variable selling and administrative expenses 230 90

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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