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Product Line Details: Product E: Sales Revenue: $4,000,000 Variable Costs: $2,400,000 Fixed Costs: $800,000 Product F: Sales Revenue: $3,000,000 Variable Costs: $1,800,000 Fixed Costs: $600,000

Product Line Details:

  • Product E:
    • Sales Revenue: $4,000,000
    • Variable Costs: $2,400,000
    • Fixed Costs: $800,000
  • Product F:
    • Sales Revenue: $3,000,000
    • Variable Costs: $1,800,000
    • Fixed Costs: $600,000

Requirements:

  • Conduct a profitability analysis for Nu Pharmaceuticals Ltd.'s Product E and Product F.
  • 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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