FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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5

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
/
Mementos
$ 813, 100
81, 310
731, 790
600, 790
$ 131,000
PRODUCT CARVINGS
Denominator:
Denominator:
PRODUCT MEMENTOS
11
Contribution margin ratio
Break-even point in dollars
Contribution margin ratio
Break-even point in dollars
0
0
0
0
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Transcribed Image Text: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 / Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS 11 Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars 0 0 0 0
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