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Product Line Details: Product A: Sales Revenue: $3,000,000 Variable Costs: $1,800,000 Fixed Costs: $600,000 Product B: Sales Revenue: $2,500,000 Variable Costs: $1,500,000 Fixed Costs: $500,000

Product Line Details:

  • Product A:
    • Sales Revenue: $3,000,000
    • Variable Costs: $1,800,000
    • Fixed Costs: $600,000
  • Product B:
    • Sales Revenue: $2,500,000
    • Variable Costs: $1,500,000
    • Fixed Costs: $500,000

Requirements:

  • Conduct a profitability analysis for Gamma Retail Ltd.'s Product A and Product B.
  • Include contribution margins and profitability ratios.
  • Present the analysis in a comparative table format.
  • Discuss which product line is more profitable and why.

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