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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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