Beta Retail Corporation

Managerial Accounting Process: Sales Performance Analysis

Product Category	Units Sold (thousands)	Sales Revenue ($ million)	Cost of Goods Sold ($ million)
Electronics	200	400	240
Apparel	150	180	108
Home Goods	100	120	72

Requirements:

1. Product Profitability Analysis:
   • Calculate the gross profit margin for each product category and discuss which category contributes the most to Beta Retail Corporation's profitability.

1. Contribution Margin Analysis:
   • Determine the contribution margin ratio for each product category and explain its significance in decision-making for pricing and product mix.

1. Sales Mix Analysis:
   • Conduct a sales mix analysis to identify the optimal sales mix that maximizes Beta Retail Corporation's overall contribution margin.

1. Segmented Income Statement:
   • Prepare a segmented income statement for Beta Retail Corporation, showing the contribution margin and net income for each product category.

1. Cost-Benefit Analysis:

Perform a cost-benefit analysis to evaluate the profitability of launching a new product line in the home goods category, considering the provided sales and cost data.