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Territory and Product Profitability Analysis Pipeline Surfboards inc, manufactures and sells two styles of surfboards, Atiantic Wave and Pacific Pounder. These surfboards are sold in
Territory and Product Profitability Analysis Pipeline Surfboards inc, manufactures and sells two styles of surfboards, Atiantic 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 sales unit volume for the sales 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. Round contribution margin ratio answers to two decimal places. Pipeline Surfboards Inc. Cantribution Marain bv Territary b. What advice would you give to the management of Pipeline Surfboards regarding the relative profitability of the two territories? The total contribution margin is contribution margin ratio is Coast sells only Atlantic Wave, which have a unit. In attempting 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 high. for the East Coast, while the for West Coast. This is because East contribution margin per that that may be too
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