1. Kappa Retail Stores

Scenario: Profitability Analysis by Product Line

Product Line Details:

• Clothing:
  • Sales Revenue: $1,000,000
  • Variable Costs: $500,000
  • Fixed Costs: $200,000

• Electronics:
  • Sales Revenue: $800,000
  • Variable Costs: $400,000
  • Fixed Costs: $150,000

Requirements:

• Conduct a profitability analysis for Kappa Retail Stores' clothing and electronics product lines. Include contribution margins and profitability ratios in a comparative table format.