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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 46,000 units of each product. Sales and costs for each product follow.

Product T Product O
Sales $ 800,400 $ 800,400
Variable costs 640,320 160,080
Contribution margin 160,080 640,320
Fixed costs 32,080 512,320
Income before taxes 128,000 128,000
Income taxes (35% rate) 44,800 44,800
Net income $ 83,200 $ 83,200
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Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage . Cuimgude the brea-les for each product Enter CM ratio as percentage rounded to 2 decimal places.) Product T Contribution Margin Ratio Choose Numerator: I Ch Choose Denominator: Contribution Margin Ratio Contribution margin ratio = Choose Numerator: Choose Denominator: Break-Even Point in Dollars = Break-even point in dollars Product C Contribution margin ratio reak-Even Point in Dollars Break-even point in dollars =

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