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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 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 Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit Atlantic Wave $200 150 50 30 20 Pacific Pounder $120 90 30 15 15 The sales unit volume for the sales territories and products for the period is as follows: Product Atlantic Wave Pacific Pounder East Coast 50,000 0 West Coast 20,000 30,000 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. b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories
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