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undefined Required information Problem 05-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 (The following information applies to the questions displayed
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Required information Problem 05-5A 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 50,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $2,000,000 1,600,000 400,000 125,000 275,000 88,000 $ 187,000 Producto $2,000,000 250,000 1,750,000 1,475,000 275,000 88,000 $ 187,000 Problem 05-5A 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 I Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: = 1 Contribution Margin Ratio Contribution margin ratio 0 Break-Even Point in Dollars Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars Break-even point in dollars 1 = Producto Contribution Margin Ratio Contribution margin ratio Break-even Point in Dollars Break-even point in dollars 0Step by Step Solution
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