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Perform a cost-volume-profit analysis for different product lines with the following data: Product Sales Revenue ($) Variable Costs ($) Fixed Costs ($) Product A 320,000
Perform a cost-volume-profit analysis for different product lines with the following data:
Product | Sales Revenue ($) | Variable Costs ($) | Fixed Costs ($) |
---|---|---|---|
Product A | 320,000 | 160,000 | 80,000 |
Product B | 240,000 | 120,000 | 60,000 |
Product C | 360,000 | 180,000 | 90,000 |
Requirements:
- Calculate the contribution margin ratio for each product.
- Determine the breakeven point in units and sales dollars for each product.
- Prepare a breakeven analysis table for each product.
- Interpret the breakeven results for each product.
- Discuss the implications of the analysis on pricing strategy for each product.
- Provide recommendations based on the analysis for each product.
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