eBook Territory and product profitability analysis Instructions Amount Descriptions Contribution Margin Report Final Question Instructions 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: Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit Atlantic Wave Pacific Pounder $514.00 $136.00 118.00 5100 $196.00 $85.00 168.00 68.00 $28.00 $17.00 The sales unit volume for the sales territories and products for the period is as follows: Atlantic Wave Pacific Pounder East Coast 30,000 0 West Coast 10,000 10,000 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 at provided for the exact wording of the answer choices for text entries Check My Work 3 more Check My Work uses remaining CO Previous Next Email Instructor Save and Exit Submit Assignment for Grading Instructions Amount Descriptions Contribution Margin Report Instructions Final Question Contribution Margin Report a 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 Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast Territory and product profitability analysis Instructions Instructions Amount Descriptions Contribution Margin Report Final Question Contribution Margin Report Final Question b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories? 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 S unit. And the Atlantic Wave's variable selling expensalunit is 5 $ while the Pacific Pounder's is S Junt With an eye on improving profitability, modifying the product mix within the two territories would be Additionally, the company should review The variable selling expense per unit could also help with overall profitability. could shed light on manufacturing inefficiencies. Also, a review of Check My Work 3 more Check My Work uses remaining Previous Next