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.SalesVariable costsContribution marginFixed costsIncomeContribution Margin RatioNumerator:Required:1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)Break-Even Point in DollarsNumerator:Contribution Margin Ratio111Carvings$ 774,400464, 640309,760187,760$ 122,0001Mementos$ 774,400154,880619,520497,520$ 122,000PRODUCT CARVINGSDenominator:Denominator:PRODUCT MEMENTOS=||Contribution margin ratioBreak-even point in dollarsContribution margin ratio00

The break even sales in dollars are calculated as fixed costs divided by contribution margin ratio.…

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. Sales Variable costs Contribution margin Fixed costs Income Mementos $ 774,400 Carvings $ 774,400 464, 640 309,760 154,880 619,520 497,520 187,760 $ 122,000 $ 122,000 quired: 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. Sales Variable costs Contribution margin Fixed costs Income Mementos $ 774,400 Carvings $ 774,400 464, 640 309,760 154,880 619,520 497,520 187,760 $ 122,000 $ 122,000 quired: 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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[The following information applies to the questions displayed below.] 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 42,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Problem 18-4A (Algo) Part 1 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratlo as percentage rounded to 2 decimal places.) Contribution Margin Ratio Numerator: Break-Even Point in Dollars Numerator: Contribution Margin Ratio Break-Even Point in Dollars 1 1 1 1 Carvings $ 747,600 523,320 224,280 Mementos $ 747,600 149,520 598,080 108,280 482,080 $ 116,000 $ 116,000 1 PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS = IL 11 Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point…
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Subject: acounting
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[The following information applies to the questions displayed below.] 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. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company 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" answers to 2 decimal places.) Contribution margin Income (loss) Carvings $ 774,400 464, 640 309,760 Mementos $ 774,400 154,880 619,520 187,760 497,520 $ 122,000 $ 122,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit Total Mementos $ Per unit Total Total