Zeta Technology Solutions

Scenario: Cost-Volume-Profit (CVP) Analysis

Product	Selling Price per Unit ($)	Variable Cost per Unit ($)	Fixed Costs ($)
Product A	70	50	150,000
Product B	100	70	200,000

Requirements:

1. Contribution Margin Calculation:
   • Calculate the contribution margin per unit and contribution margin ratio for Product A and Product B using marginal costing principles.

1. Break-Even Analysis:
   • Perform a break-even analysis to determine the number of units and sales revenue needed for Zeta Technology Solutions to break even, applying marginal costing insights.

1. Profitability Analysis:
   • Determine which product (Product A or Product B) 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 Zeta Technology Solutions' overall contribution margin, considering marginal costing concepts.

1. Strategic Pricing Decision:
   • Recommend a pricing strategy for Zeta Technology Solutions to achieve its profit target, considering the contribution margin analysis using marginal costing.