Question: Coast to Coast Surfboards Inc manufactures and sells two styles

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 and West. 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. Calculate the contribution margin ratio for each territory as a whole percent, rounded to two decimal places.
b. What advice would you give to the management of Coast to Coast Surfboards regarding the relative profitability of the twoterritories?

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  • CreatedJune 27, 2014
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