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	$200		$150
Variable cost of goods sold per unit	(74)		(71)
Manufacturing margin per unit	$126		$79
Variable selling expense per unit	(86)		(37)
Contribution margin per unit	$40		$42

The sales unit volume for the territories and products for the period is as follows:

	East Coast		West Coast
Atlantic Wave	2,860		1,430
Pacific Pounder	0		1,430

Question Content Area

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
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesSales	$Sales	$Sales
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesVariable cost of goods sold	Variable cost of goods sold	Variable cost of goods sold
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesManufacturing margin	$Manufacturing margin	$Manufacturing margin
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesVariable selling expenses	Variable selling expenses	Variable selling expenses
Contribution marginManufacturing marginSalesVariable cost of goods soldVariable selling expensesContribution margin	$Contribution margin	$Contribution margin
Contribution margin ratio	fill in the blank 6e29f0ff4027040_16%	fill in the blank 6e29f0ff4027040_17%