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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Fixed costs
113,680
526,480
Income
$134,000 $134,000
Compute the break-even point in dollar sales for each product.
577,920 165,120
247680
660480
Contribution Margin Ratio
Numerator:
Break-Even Point in Dollars
Numerator:
Contribution Margin Ratio
Break-Even Point in Dollars
I
1
1
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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