Profitability Analysis by Product LineProduct Line Details:Product A:Sales Revenue: $3,000,000Variable Costs: $1,800,000Fixed Costs: $600,000Product B:Sales...
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Accounting
Profitability Analysis by Product Line
Product Line Details:
- Product A:
- Sales Revenue: $3,000,000
- Variable Costs: $1,800,000
- Fixed Costs: $600,000
- Product B:
- Sales Revenue: $2,500,000
- Variable Costs: $1,500,000
- Fixed Costs: $500,000
Requirements:
- Conduct a profitability analysis for Gamma Retail Ltd.'s Product A and Product B.
- Include contribution margins and profitability ratios.
- Present the analysis in a comparative table format.
- Discuss which product line is more profitable and why.
- Analyze the strategic implications of the profitability analysis.
- Evaluate the impact of product mix on overall company profitability.
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