Company: Gamma Consulting Services

Scenario: Contribution Margin Analysis

Service Line	Sales Revenue ($)	Variable Costs ($)	Fixed Costs ($)
Consulting	300,000	120,000	100,000
Training	200,000	80,000	70,000

Requirements:

1. Contribution Margin Calculation:
   • Calculate the contribution margin and contribution margin ratio for each service line at Gamma Consulting Services.

1. Break-Even Analysis:
   • Perform a break-even analysis to determine the total sales revenue needed for Gamma Consulting Services to break even.

1. Profitability Analysis:
   • Determine which service line (Consulting or Training) is more profitable based on the contribution margin ratio.

1. Sales Mix Analysis:
   • Conduct a sales mix analysis to identify the optimal sales mix that maximizes Gamma Consulting Services' overall contribution margin.

1. Strategic Pricing Decision:

Recommend a pricing strategy for Gamma Consulting Services to increase profitability, considering the contribution margin analysis