Question: Staples is considering three different scenarios for next year's segment mix. Senario 1 Scenario 2 Scenario 3 Office supplies and services 48% 47% 42% Business

Staples is considering three different scenarios for next year's segment mix.

Senario 1 Scenario 2 Scenario 3

Office supplies and services 48% 47% 42%

Business machines and related products 32% 28% 31%

Computers and related products 15% 18% 20%

Office furniture 5% 7% 7%

The four segment above have the following contribution margin ratios:

Office supplies and services 12%

Business machines and related products 22%

Computers and related products 25%

Office furniture 8%

For the overall profitability of Staples, what is the correct order of the three scenarios (from the most profitable to the least profitable)?

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