Profitability Analysis by Product Line

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.