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 47,000 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 $ 813, 100 487,860 325, 240 194, 240 $ 131,000 1 Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS = Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars
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 47,000 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 $ 813, 100 487,860 325, 240 194, 240 $ 131,000 1 Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS = Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...
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