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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
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 50,000 units of each product. Sales and costs for each product follow. Product I Producto Sales $2,000,000 $2,000,000 Variable costs 1,600,000 250,000 Contribution margin 400,000 1,750,000 Fixed costs 125,000 1,475,000 Income before taxes 275,000 275,000 Income taxes (324 rate) 88,000 88,000 Net income $ 187,000 $ 187,000 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places Product I Contribution Margin Ratio Choose Numerator: Total foxed costs Choose Denominator: 1 Contribution margin ratio Contribution Margin Ratio Contribution margin ratio 0 Break-Even Point In Dollars Choose Numerator: Choose Denominator: Break-Even Point In Dollars Break-even point in dollars 0 Producto Contribution Margin Ratio Contribution margin ratio Breakeven Pointin Dollars Break-even point in dollars 0
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