Upsilon Retail Stores

Scenario: Cost-Volume-Profit (CVP) Analysis

Department	Selling Price per Unit ($)	Variable Cost per Unit ($)	Fixed Costs ($)
Electronics	200	120	150,000
Apparel	150	80	100,000

Requirements:

1. Contribution Margin Calculation:
   • Calculate the contribution margin per unit and contribution margin ratio for each department (Electronics and Apparel) at Upsilon Retail Stores using marginal costing principles.

1. Break-Even Analysis:
   • Perform a break-even analysis to determine the sales revenue needed for Upsilon Retail Stores to break even, incorporating marginal costing insights.

1. Profitability Analysis:
   • Determine which department (Electronics or Apparel) generates higher profitability based on the contribution margin ratio calculated using marginal costing.

1. Sales Mix Analysis:
   • Conduct a sales mix analysis to identify the optimal sales mix that maximizes Upsilon Retail Stores' overall contribution margin, applying marginal costing concepts.

1. Strategic Pricing Decision:

Recommend a pricing strategy for Upsilon Retail Stores to optimize profitability, considering the contribution margin analysis using marginal costing.