Question

Required information [The following information applies to the questions displayed below.) Henna Co. produces and sells two pRequired: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decima

0 0
Add a comment Improve this question Transcribed image text
Answer #1

PRODUCT - T

   Contribution margin ratio = Contribution Margin / Sales

= 247,680 / 48,000

= 5.16%

Break-even point in dollars sales = Fixed cost / Contribution Margin Ratio

= 113,680 / 5.16%

= $ 2,203,100

PRODUCT - O

Contribution margin ratio = Contribution Margin / Sales

= 660,480 / 48,000

= 13.76%

   Break-even point in dollars sales = Fixed cost / Contribution Margin Ratio

    = 526,480 / 13.76%

= $ 3,826,163   

Add a comment
Know the answer?
Add Answer to:
Required information [The following information applies to the questions displayed below.) Henna Co. produces and sells...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Required information (The following information applies to the questions displayed below.) Henna Co. produces and sells...

    Required information (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 56,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (35% rate) Net income Product T $ 929,600 650, 720 278,880 132,880...

  • Henna Co. produces and sells two products, T and O. It manufactures these products in separate...

    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 48,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 825,600 577,920 247,680 113,680 134,000 42,880 $ 91,120 Product O $825,600 165,120 660,480 526,480 134,000 42,880...

  • Henna Co. produces and sells two products, T and O. It manufactures these products in separate...

    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 51,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 821,100 $ 821,100 Variable costs 492,660 82,110 Contribution margin 328,440 738,990 Fixed costs 187,440 597,990 Income before taxes 141,000 141,000 Income taxes (32% rate) 42,300 42,300 Net income $...

  • Henna Co. produces and sells two products, T and O. It manufactures these products in separate...

    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 59,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (30% rate) Net income Product T $ 997, 109 697,970 299, 130 150, 130 149,000 44,700 $ 104,300 Product O $ 997,100 99,710...

  • I need help with my assignment please.. Henna Co. produces and sells two products, T and...

    I need help with my assignment please.. 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 45,000 units of each product. Sales and costs for each product follow. Sales Variable costs Product T $787,500 551,250 Product O $787,500 78,750 Contribution margin Fixed costs 236,250 111,250 708,750 583,750 Income before taxes Income taxes (40% rate) 125,000 50,000...

  • HI, please answer this 3 part question. Required information [The following information applies to the questions...

    HI, please answer this 3 part question. Required information [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 59,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (30% rate) Net income Product...

  • Required information [The following information applies to the questions displayed below.] Praveen Co. manufactures and markets...

    Required information [The following information applies to the questions displayed below.] Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $230 selling price per 100 yards of XT rope. Its fixed costs...

  • Required information The following information applies to the questions displayed below.) Praveen Co. manufactures and markets...

    Required information The following information applies to the questions displayed below.) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $240 selling price per 100 yards of XT rope. Its fixed costs...

  • Saved Requirea information Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1,...

    Saved Requirea information Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 (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 52,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before...

  • Required information (The following information applies to the questions displayed below) Praveen Co. manufactures and markets...

    Required information (The following information applies to the questions displayed below) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $190 selling price per 100 yards of XT rope. Its fixed costs...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT