A company produces three products: A, B & C. you had been tasked with coming up with data on their costs and profitability and you came with the data below;

Product A Product B Product C Total

Revenue 33,721 11,424 5,527 50,672

Variable costs

Raw materials 13,688 3,427 1,348 18,463

Packaging 3,016 2,621 701 6,338

Energy 699 526 110 1,335

Total variable costs 17,403 6,574 2,159 26,136

Contribution 16,318 4,850 3,368 24,536

Contribution percentage 48% 42% 61% 48%

Direct fixed costs

Labour 2,806 1,091 460 4,357

Depreciation 2,175 1,510 948 4,633

Maintenance 473 286 73 832

Total direct fixed costs 5,454 2,887 1,481 9,822

Gross profit 10,864 1,963 1,887 14,714

Indirect fixed costs

Selling and marketing 1,600 542 262 2,404

Warehouse and distribution 3,147 1,066 516 4,729

Accounting, IT and HR 1,344 455 220 2,020

Executive office 685 232 112 1,029

Total indirect fixed costs 6,776 2,295 1,110 10,182

Total fixed costs 12,230 5,182 2,591 20,004

Profit/(loss) 4,088 (332) 777 4,532

The management of the company is interested in an in-depth analysis of the company in terms of the risks, returns and viability of the three products.

Required

Focusing on the data provided above, write a report to the management evaluating the three products risks, returns and viability.