M Inbox (90 E New tab P American O gMAV? Ir My Grade O Budget a cheg Inbox (90 ?
ID: 2522346 • Letter: M
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M Inbox (90 E New tab P American O gMAV? Ir My Grade O Budget a cheg Inbox (90 ? ?? https://newconnect.mheducation.com flow/connecthtml Ch 17 &18 Required information The tollowing 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 difterent channels. They have no shared costs. This year, the company sold 43,000 units of each product Sales and costs for each product follow Product O Product T $761,100 608,880 Sales Variable casts contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income $761,180 152,220 26,118 684,990 33,220 119,800 35,78 565,990 119,800 35,700 S 83,30e 5 83,308 Required: 1. Compute the break-even point in dollar sales for each product (Enter CM ratio as percentage founded O 2 decinal places) Contribution Margin Rasio Choose e to searchExplanation / Answer
Solution 1:
Contribution margin ratio = Contribution / Sales
Product T = $152,220 / $761,100 = 20%
Product O = $684,990 / $761,100 = 90%
Breakeven dollar sales = Fixed cost / contribution margin ratio
Product T = $33,220 / 20% = $166,100
Product O = $565,990 / 90% = $628,878
Solution 2:
Solution 3:
Henna Company Forecasted contribution margin income statement Particulars Units Product T Product O Total $ per unit Total $ per unit Total Sales 26000 $17.70 $460,200.00 $17.70 $460,200.00 $920,400.00 Variable cost $14.16 $368,160.00 $1.77 $46,020.00 $414,180.00 Contribution Margin $3.54 $92,040.00 $15.93 $414,180.00 $506,220.00 Fixed costs $33,220.00 $565,990.00 $599,210.00 Income before taxes $58,820.00 -$151,810.00 -$92,990.00 Income Taxes (30%) $17,646.00 -$45,543.00 -$27,897.00 Net Income (Loss) $41,174.00 -$106,267.00 -$65,093.00Related Questions
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