Question

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 T $ 997,100 697,970 299,130 150,130 149,000 44,700 $ 104,300 Product o $ 997,100 99,710 897,390 748,390 149,000 44,700 $ 104,300 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Product T Contribution Margin Ratio Choose Numerator: Choose Denominator: 1 1 Contribution Margin Ratio Contribution margin ratio 11 Break-Even Point in Dollars Choose Numerator: Choose Denominator: = 1 1 Break-Even Point in Dollars Break-even point in dollars 11 Producto Contribution Margin Ratio II Contribution margin ratio Break-Even Point in Dollars 11 Break-even point in dollars

Answer 1

product a) contribution Margin palio, or plu Ratio contribution Sales $ 299,130 $997,970 0.299 b) BEP in Dollar Fixed cost Plu Ratio $ 150,130 0.299 $ 500107

product Contribution Margin Peeteo B.E-P in & $ 897,390 $ 997,100 728390 0.9 831,544 >

When sale of each product decline to 42000 write Jotal 16.9 70980 567840 HENNA forecosted contribution Margin Income Statement particulary units product -T procent & Pla Total & plu Total Sales Adono 709800 16.9 70 9800 1419600 variable cost 11.83 496,860 1.69 Contribution M roo7 212940 638820 851760 Fixed cost 17.89 748390 898520 Income Before Tanc 1. 49 62810 -2.6 -109570 -46760 Income Tanc (30%) 18843 0.45 Net Income (Low) 1.05 143,967 -2.6 E 109570) | (-46760) 3.5+ 150130
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