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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: Atlantic Wave Pacific Pounder Sales price $250 $200 Variable cost of goods sold per unit (93) (92) Manufacturing margin per unit $157 $100 Variable selling expense per unit (107) (52) Contribution margin per unit $50 $56 The sales unit volume for the territories and products for the period is as follows: East Coast West Coast Atlantic Wave 3,540 1,770 Pacific Pounder 1,770 0 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 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 WASH Sales Variable cost of goods sold Manufacturing margin Variable selling expenses Contribution margin X Contribution margin ratio

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