[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 Contribution Margin Ratio Numerator: 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 Dollars Numerator: Contribution Margin Ratio Break-Even Point in Dollars Carvings $ 774,400 464,640 309,760 187,760 Mementos $ 774,400 154,880 619,520 497,520 $ 122,000 $ 122,000 I PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Subject: acounting 

[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
Contribution Margin Ratio
Numerator:
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 Dollars
Numerator:
Contribution Margin Ratio
Break-Even Point in Dollars
Carvings
$ 774,400
464,640
309,760
187,760
Mementos
$ 774,400
154,880
619,520
497,520
$ 122,000 $ 122,000
I
PRODUCT CARVINGS
Denominator:
Denominator:
PRODUCT MEMENTOS
Contribution margin ratio
Break-even point in dollars
Contribution margin ratio
Break-even point in dollars
Transcribed Image Text:[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 Contribution Margin Ratio Numerator: 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 Dollars Numerator: Contribution Margin Ratio Break-Even Point in Dollars Carvings $ 774,400 464,640 309,760 187,760 Mementos $ 774,400 154,880 619,520 497,520 $ 122,000 $ 122,000 I PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Transfer Pricing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education