Required information[The following information applies to the questions displayed below.]Henna Company produces and sells two products, Carvings and Mementos. It manufactures theseproducts in separate factories and markets them through different channels. They have no sharedcosts. This year, the company sold 46,000 units of each product. Income statements for eachproduct follow.CarvingsMementosSalesVariable costsFixed costsIncome$ 800,400640,320$ 800,400160,080Contribution margin160,08032,080640,320512,320$ 128,000$ 128,000Required:1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2decimal places.)Contribution Margin RatioPRODUCT CARVINGSNumerator:1Denominator:Contribution margin/ SalesBreak-Even Point in DollarsNumerator:Total fixed costsContribution margin ratio0Denominator:Sales=Break-even point in dollars0PRODUCT MEMENTOSContribution Margin RatioContribution margin ratio0Break-Even Point in Dollars=Break-even point in dollars0

BEP stands for "Break-even Point." It represents the level of sales at which total revenue equals…

Required information [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 46,000 units of each product. Income statements for each product follow. Sales Variable costs Fixed costs Income Carvings $ 800,400 Mementos $ 800,400 Contribution margin 640,320 160,080 32,080 160,080 640,320 512,320 $ 128,000 $ 128,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Contribution Margin Ratio Numerator: Contribution margin Break-Even Point in Dollars Numerator: Total fixed costs PRODUCT CARVINGS Denominator: Sales Denominator: Sales PRODUCT MEMENTOS Contribution Margin Ratio Break-Even Point in Dollars Contribution margin ratio 0 Break-even point in dollars 0 = Contribution margin ratio Break-even point in dollars 0

Required information [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 46,000 units of each product. Income statements for each product follow. Sales Variable costs Fixed costs Income Carvings $ 800,400 Mementos $ 800,400 Contribution margin 640,320 160,080 32,080 160,080 640,320 512,320 $ 128,000 $ 128,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Contribution Margin Ratio Numerator: Contribution margin Break-Even Point in Dollars Numerator: Total fixed costs PRODUCT CARVINGS Denominator: Sales Denominator: Sales PRODUCT MEMENTOS Contribution Margin Ratio Break-Even Point in Dollars Contribution margin ratio 0 Break-even point in dollars 0 = Contribution margin ratio Break-even point in dollars 0

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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