[The following information applies to the questions displayed below.]Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and marketsthem through different channels. They have no shared costs. This year, the company sold 46,000 units of each product.Sales and costs for each product follow.Product TProduct 0$ 800,400$ 800,400160,080SalesVariable costs640,320Contribution marginFixed costs160,08032,080640,320128,00044,800512,320128,00044,800Income before taxesIncome taxes (35% rate)Net income$ 83, 200$ 83,200 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)Product TContribution Margin RatioChoose Numerator:Choose Denominator:Contribution Margin RatioContribution margin ratioBreak-Even Point in DollarsChoose Numerator:Choose Denominator:Break-Even Point in DollarsBreak-even point in dollarsProduct OContribution Margin RatioContribution margin ratioBreak-Even Point in DollarsBreak-even point in dollars

1. CONTRIBUTION MARGIN = SALES - VARIABLE COSTS 2. CONTRIBUTION MARGIN RATIO = (CONTRIBUTION MARGIN…

[The following information applies to the questions displayed below.] Henna Co. produces and sells two products, T and O. 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. Sales and costs for each product follow. Product T $ 800,400 640, 320 160,080 32,080 128,000 Product O $ 800,400 160,080 640,320 512,320 128,000 44 , 800 $ 83, 200 Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (35% rate) 44, 800 Net income $ 83, 200

[The following information applies to the questions displayed below.] Henna Co. produces and sells two products, T and O. 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. Sales and costs for each product follow. Product T $ 800,400 640, 320 160,080 32,080 128,000 Product O $ 800,400 160,080 640,320 512,320 128,000 44 , 800 $ 83, 200 Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (35% rate) 44, 800 Net income $ 83, 200

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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