ScooterSport Inc. manufactures and sells two styles of scooter, Mountain Cat and City Dawg. These scooters are sold in two regions, the Colorado and Northern California. Information about the two scooters is as follows:

The sales unit volume for the 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 ScooterSport Inc. regarding the relative profitability of the twoterritories?

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Mountain Cat Sales price Variable cost of goods sold per unit Manufacturing margin per unit Variable selling expense per unit Contribution margin per unit City Dawg $150 S 75 S 45 $250 75 $158 104 S 54 Colorado Northern California 6,000 Mountain Cat City Dawg 3,000 3,000