Question: Use CVP analysis to make a pricing decision for a retail product. Product Details Selling Price per Unit ($) Variable Cost per Unit ($) Fixed

Use CVP analysis to make a pricing decision for a retail product.

Product Details

Selling Price per Unit ($)

Variable Cost per Unit ($)

Fixed Costs ($)

Product X

$100

$60

$200,000

Product Y

$150

$80

$300,000

Requirements:

Calculate the contribution margin per unit and contribution margin ratio for each product.

Determine the break-even point in units and sales dollars for Product X and Product Y.

Recommend which product to prioritize based on CVP analysis and strategic objectives.

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