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: Atlantic Wave Pacific Pounder Sales price $350 $300 Variable cost of goods sold per unit (130) (141) Manufacturing margin per unit $220 $159 Variable selling expense per unit (150) (81) Contribution margin per unit $70 $78 The sales unit volume for the territories and products for the period is as follows: Atlantic Wave Pacific Pounder East Coast West Coast 3,300 0 1,650 1,650 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 G 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 V 1,155,000 1,072,500 V Variable cost of goods sold 429,000 465,300 X Manufacturing margin V 726,000 607,200 X Variable selling expenses 495,000 V 480,150 X Contribution margin 231,000 V 127,050 X 0.2 X % 0.19 X% Contribution margin ratio 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 margin ratio, divide 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? for the East Coast, while the contribution marinesti effetti Stif The total contribution margin is slightly lower