Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separatefactories and markets them through different channels. They have no shared costs. This year, the company sold 44,000units of each product. Income statements for each product follow.Carvings$ 774,400464,640Mementos$ 774,400SalesVariable costs154,880309,760619,520Contribution marginFixed costs187,760497,520Income$ 122,000 $ 122,000Required:1. Compute the break-even point in dollar sales for each product (Enter CM ratio as percentage rounded to 2 decimal places.)PRODUCT CARVINGSContribution Margin RatioNumerator:Denominator:Contribution margin ratio.Break-Even Point in DollarsNumerator:Denominator:Break-even point in dollarsPRODUCT MEMENTOSContribution Margin RatioContribution margin ratioBreak Even Point in DollarsBreak-even point in dollars11000 3. Assume that the compeny expects sales of each product to increase to 58,000 units next year with no change in unit selling price.Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products) (Round"per unit" enswers to 2 decimal places.)HENNA COMPANYContribution Margin income StatementCarvingsMementonTotalPer anitTotal$$Contribution marginIncome (los)$Units$0Par unitTotal0519D$

Name: Henna Company produces and sells two products, Carvings and Mementos.
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Description: Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separatefactories and markets them through different channels. They have no shared costs. This year, the company sold 44,000units of each product

Carvings Mementos Sales Units 44000 44000 Sales 44000*17.6 774400 44000*17.6 774400…

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Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 44,000 units of each product. Income statements for each product follow. Mementos $ 774,400 Sales Carvings $ 774,400 464,640 309,760 Variable costs Contribution margin Fixed costs 154,880 619,520 187,760 497,520 Income $ 122,000 $ 122,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)

Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 44,000 units of each product. Income statements for each product follow. Mementos $ 774,400 Sales Carvings $ 774,400 464,640 309,760 Variable costs Contribution margin Fixed costs 154,880 619,520 187,760 497,520 Income $ 122,000 $ 122,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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