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Territory and Product Profitability Analysis Coast to Coost Surfhoards inc. manufactures and selis two styles of surfboards, Atiantic Wave arid Pacific Pounder. These surfboards are sold in two regiens, East Coast and West Coast. Information about the two surfboards is as tollows: The sales 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, rounded to two decimal places if required. Coast to Coast Surfboards Inc. Contribution Margin by Territory T. Check My Wook a. To recast the contribution margin data by sales territory report, multiply the sales volume by each per unit amount. To calculate the contributian margin ratio, divide the contribution margin by sales. b. What advice would you give to the management of Coast to Coast Surfooards regarding the relative profitability of the two ternitories? The total contribution margin is for the East Coast, while the contribution margin ratio is for West Coast. This is because East Coast sells only Atiantic Wave, which have a contribution margin ratio but a contribution margin per unit. In atterngting to improve the company's profitability, it is that changing the max of products to the two territories wil have much effect. In addition, the variable seling expenses per unit for the may be too high

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