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Product Line Details: Product C: Sales Revenue: $3,500,000 Variable Costs: $2,100,000 Fixed Costs: $700,000 Product D: Sales Revenue: $2,800,000 Variable Costs: $1,700,000 Fixed Costs: $600,000

Product Line Details:

  • Product C:
    • Sales Revenue: $3,500,000
    • Variable Costs: $2,100,000
    • Fixed Costs: $700,000
  • Product D:
    • Sales Revenue: $2,800,000
    • Variable Costs: $1,700,000
    • Fixed Costs: $600,000

Requirements:

  • Conduct a profitability analysis for Sigma Pharmaceuticals Ltd.'s Product C and Product D.
  • Include contribution margins and profitability ratios.
  • Present the analysis in a comparative table format.
  • Discuss which product line is more profitable and why.
  • Analyze the strategic implications of the profitability analysis.
  • Evaluate the impact of product mix on overall company profitability.

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