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Pipeline Surfboards inc, manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder, These surfboards are poid in two regians, East Coast and we 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 contribubon margin by sales temtory raport. Compute the contribution margin ratio for each territacy found contribution margin ratio answers to two decimal places. Pipeline Surfboards Inc. Contribution Maryin by Territary The sales unit volume for the sales territories and products for the period is as follows: a. Prepare a contribution margin by sales berritory report. Compute the contribution margin ratio for each territory, Round contributian margin ratio answers to th decimal places. Pipeline Surfboards Inc. Contribution Margin by Territory 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 for the East Coast, while the contribution margin ratio is for West Ceast. This is because Fast Coast selis only Atiantic Wave, which have a contribution margin per unit. In attempting to improve the comasnys profitabilit, it is that changing the mix of products to the two territories wit have rauch effect In addition, the varlable selling expenses per unit for the may be too high

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