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Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are

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Territory and Product Profitability Analysis 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: The saies unit volume for the territories and products for the period is as follows: a. Prepare a contribution margin by sales territory report. Compute the contribution margin ratio for each territory as a whole percent, rounder to two decimal places, if required. Coast to Coast Surfboards Inc. Contribution Margin by Territory b. What advice would you olve to the management of Coast to Coast Surfboards regarding the relative profitabilitr of the two territios? The total contribution maroin is for the East Coast, while the contribution maroin ratio is Coast. This is because East coast selis only Atiantic Wave, which have a contribution margin ratio buta contribution maroin per unit. In attemptino to improve the company's profitability, it is changing the mix of products to the two territories will have much effect, in addition, the variable selling expenses per unit for the may be too high

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