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 surboards is as follows: Atlantic Wave Pacific Pounder Sales price $502.00 $128.00 113.00 48.00 Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit $189.00 $80.00 162.00 64.00 6 Contribution margin per unit $27.00 $16.00 The sales unit volume for the sales territories and products for the period is as follows East Coast West Coast Atlantic Wave 20,000 5,000 Pacific Pounder 0 5,000 a. Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories? a Prepare a contribution margin by sales femtory report Calculate the contribution margin ratio for each territon as a whole percent, rounded to one decimal place. Refer to the Amount Descnptions ust provided for the exact wording of the answer choices for text entries Coast to Coast Surfboards ind Contribution Margin by Territory East Coas: West Coast Sales 5 Variable cost of goods sold 4 Manufacturing margin 5 Variable selling expenses 5 Contribution margin Contribution margin ratio b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two tertories? The East Coast's total contribution margin is and the contribution margin ratio is when compared to the West Coast. This, in part, is explained by the single board style for the East Coast as compared to the two styles available in the West Coast. Taking a closer look, the Atlantic Wave's manufacturing margin/unit is $ while the Pacific Pounder's is $ Yunit. And the Atlantic Wave's variable selling expense/unit is while the Pacific Pounder's is $ Vunit With an eye on improving profitability, modifying the product mix within the two territories would be Additionally, the company should review The could shed light on manufacturing inefficiencies. Also a review of variable selling expense per unit could also help with overall profitability