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A company produces and sells two products. It sells these products through different channels, and makes them in separate factories. The products have no
A company produces and sells two products. It sells these products through different channels, and makes them in separate factories. The products have no shared costs. This year there were 42,000 units of each product sold. Contribution margin income statements follow. Sales Variable costs Fixed costs Income Product 1 $ 735,000 Contribution margin 441,000 294,000 110,500 Product 2 $ 735,000 73,500 661,500 478,000 $ 183,500 $ 183,500 Complete this question by entering your answers in the tabs below. Product 1 Product 2 For Product 1, compute the contribution margin ratio, the break-even point in dollar sales, and the degree of operating leverage. If sales in dollars increase by 10% for this product, compute income. Contribution Margin Ratio Numerator 1 Numerator Denominator Break-Even Point in Dollars Denominator = Contribution margin ratio Break-even point in dollars
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