eBook Territory and Product Profitability Analysis Sales price Coast to Coast Surfboards Inc, manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, Last Coast and West Coast. Information about the two surfboards is as follows: Atlantic Wave Pacific Pounder $350 $250 Variable cost of goods sold per unit (130) (118) Manufacturing margin per unit $220 $132 Variable selling expense per unit (157) (67) $63 Contribution margin per unit $65 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast 3,060 Atlantic Wave Pacific Pounder 1.530 1,530 0 I a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two decimal places, if required. Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses pagod Contribution margin Previous Next Check My Work Emal instructor Save and Exit Submit Assignment for Grading BOOK a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounded to two de required. Coast to Coast Surfboards Inc. Contribution Margin by Territory East Coast West Coast Sales Variable cost of goods sold Manufacturing margin Variable selling expenses boobil Contribution margin Contribution margin ratio % % I Feedback Check My Work a. To recast the contribution margin data by sales territory report, multiply the sales volume by each per unit amount to calculate the contribution the contribution margin by sales, b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the two territories? The total contribution margin is slightly lower for the East Coast, while the contribution margin ratio is slightly higher for West Coast. This sells only Atlantic Wave, which have a lower contribution margin ratio but a lower contribution margin per unit. In attempting to improve the profitability, it is unlikely that changing the mix of products to the two territories will have much effect. In addition, the variable selling expenses Atlantic Wave may be too high