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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.

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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 55,000 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 $907,500 726,000 181,500 36,500 145,000 43,500 $101,500 Product o $907,500 90,750 816,750 671,750 145,000 43,500 $101,500 Problem 18-5A Part 1 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: Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Choose Numerator: Choose Denominator: = Break-Even Point in Dollars Break-even point in dollars = Product T Contribution Margin Ratio Choose Numerator: Choose Denominator: II Contribution Margin Ratio Contribution margin ratio 11 Break-Even Point in Dollars Choose Numerator: Choose Denominator: = Break-Even Point in Dollars Break-even point in dollars 11 Producto Contribution Margin Ratio 1 11 Contribution margin ratio Break-Even Point in Dollars 1 II Break-even point in dollars

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