if you could show work that would be great ! :) [The following information appli
ID: 2467751 • Letter: I
Question
if you could show work that would be great ! :)
[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 47,000 units of each product. Sales and costs for each product follow Sales Variable costs Product T $ 813,100 487,860 Product O 813,100 81,310 Contribution margin Fixed costs 325,240 731,790 194,240 600,790 131,000 39,300 Income before taxes 131,000 39,300 Income taxes (30% rate) Net income $ 91,700 $ 91,700Explanation / Answer
T Q sales 813100 813100 variable cost 487860 81310 contribution 325240 731790 contribution margin ratio 0.4 0.9 fixed cost 194240 600790 contribution margin in dollars fixed cost/contribution margin contribution margin in dollars 485600 667544.4444 Unit sales of 30000 T Variable cost Q sales 813100 487860 Variable cost 81310 no of units 47000 47000 no of units 47000 per unit selling price 17.3 10.38 per unit variable cost 1.73 T Q Total sales 30000 17.3 519000 519000 1038000 variable cost 30000 10.38 311400 51900 363300 contribution 207600 467100 674700 Fixed cost 194240 600790 795030 EBIT 13360 -133690 147050 Tax 4008 -40107 44115 Earning after tax/ loss after tax savings 9352 93583 -84231 Unit sale of 61000 T Q Total sales 61000 17.3 1055300 1055300 2110600 variable cost 61000 10.38 633180 105530 738710 contribution 422120 949770 1371890 Fixed cost 194240 600790 795030 EBIT 227880 348980 576860 Tax 68364 104694 173058 Earning after tax/ loss after tax savings 159516 244286 403802
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