1. Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:

Element	Atlantic Wave	Pacific Pounder
Sales price	$200	$120
Variable cost of goods sold per unit	150	90
Manufacturing margin per unit	50	30
Variable selling expense per unit	30	15
Contribution margin per unit	20	15

The sales unit volume for the sales territories and products for the period is as follows:

Product	East Coast	West Coast
Atlantic Wave	50,000	20,000
Pacific Pounder	0	30,000

1. Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent, rounded to two decimal places.
2. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories?