Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate...

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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 50,000 units of each product. Income statements for each product follow. Sales Mementos $ 2,000,000 Variable costs Contribution margin Carvings $ 2,000,000 1,600,000 400,000 125,000 250,000 1,750,000 1,475,000 Fixed costs Income $ 275,000 $ 275,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Denominator: = Contribution margin ratio Break-Even Point in Dollars Numerator: Denominator: Break-even point in dollars Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Denominator: Contribution margin ratio Break-Even Point in Dollars Numerator: Denominator: Break-even point in dollars PRODUCT MEMENTOS Contribution Margin Ratio Contribution margin ratio Broak-Even Point in Dollars Break-even point in dollars 1 1 1 a 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 50,000 units of each product. Income statements for each product follow. Sales Mementos $ 2,000,000 Variable costs Contribution margin Carvings $ 2,000,000 1,600,000 400,000 125,000 250,000 1,750,000 1,475,000 Fixed costs Income $ 275,000 $ 275,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Denominator: = Contribution margin ratio Break-Even Point in Dollars Numerator: Denominator: Break-even point in dollars Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Denominator: Contribution margin ratio Break-Even Point in Dollars Numerator: Denominator: Break-even point in dollars PRODUCT MEMENTOS Contribution Margin Ratio Contribution margin ratio Broak-Even Point in Dollars Break-even point in dollars 1 1 1 a

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Answer Solution iCalculation of Break Even Sales Fi... View the full answer