Company: Lambda Pharmaceuticals

Scenario: Product Costing Analysis

Product	Selling Price per Unit ($)	Variable Cost per Unit ($)	Fixed Costs ($)
Product X	50	30	80,000
Product Y	80	50	120,000

Requirements:

1. Contribution Margin Calculation:
   • Calculate the contribution margin per unit and contribution margin ratio for Product X and Product Y using marginal costing principles.

1. Break-Even Analysis:
   • Perform a break-even analysis to determine the number of units and sales revenue needed for Lambda Pharmaceuticals to break even, considering marginal costing insights.

1. Profitability Analysis:
   • Determine which product (Product X or Product Y) generates higher profitability based on the contribution margin ratio calculated using marginal costing.

1. Sales Mix Analysis:
   • Conduct a sales mix analysis to identify the optimal sales mix that maximizes Lambda Pharmaceuticals' overall contribution margin, using marginal costing concepts.

1. Strategic Pricing Decision:

Recommend a pricing strategy for Lambda Pharmaceuticals to achieve its profit target, considering the contribution margin analysis using marginal costing.