Question
[The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in
[The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. 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. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 2,000,000 1,600,000 400,000 125,000 Mementos $ 2,000,000 250,000 1,750,000 1,475,000 $ 275,000 $ 275,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Break-Even Point in Dollars Numerator: Contribution Margin Ratio Break-Even Point in Dollars Denominator: = Contribution margin ratio Denominator: = Break-even point in dollars PRODUCT MEMENTOS = Contribution margin ratio = Break-even point in dollars
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