Q17. 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 48,000 units of each product. Income statements for each product follow. Carvings Mementos $825,600 $825,600 Sales Variable costs Contribution margin 247680 Fixed costs 113,680 Income $134,000 Compute the break-even point in dollar sales for each product. 577,920 165,120 660480 526,480 $134,000 Contribution Margin Ratio Numerator: Break Even Point in Dollars Numerator: Contribution Margin Ratio Break-Even Point in Dollars PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.