Question: Contribution Margin Analysis (Breakdown by Product): A company sells three products, A, B, and C, with the following information: Product A: Sales Revenue = $40,000,

Contribution Margin Analysis (Breakdown by Product):

A company sells three products, A, B, and C, with the following information:

  • Product A: Sales Revenue = $40,000, Variable Costs = $15,000
  • Product B: Sales Revenue = $60,000, Variable Costs = $25,000
  • Product C: Sales Revenue = $80,000, Variable Costs = $30,000

Requirements:

  1. Calculate the contribution margin for each product.
  2. Determine the total contribution margin for the company.
  3. Compute the contribution margin ratio for each product.

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