Please help me to solve this problem Required information[The following information applies to the questions displayed below.]Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separatefactories and markets them through different channels. They have no shared costs. This year, the company sold 55,000units of each product. Income statements for each product follow.SalesVariable costsContribution marginFixed costsIncomeContribution Margin RatioNumerator:Break-Even Point in DollarsNumerator:Required:1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)Contribution Margin RatioBreak-Even Point in DollarsICarvings$ 907,500726,000181,50036,500$ 145,000 $ 145,000īMementos$ 907,50090,750Denominator:816,750671,750PRODUCT CARVINGSDenominator:PRODUCT MEMENTOS==Contribution margin ratioBreak-even point in dollarsContribution margin ratioBreak-even point in dollars 2. Assume that the company expects sales of each product to decline to 38,000 units next year with no change in unit selling price.Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round"per unit" answers to 2 decimal places.)Contribution marginIncome (loss)Contribution marginHENNA COMPANYContribution Margin Income StatementCarvingsIncome (loss)Units$ Per unitUnitsTotal3. Assume that the company expects sales of each product to increase to 69,000 units next year with no change in unit selling price.Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round"per unit" answers to 2 decimal places.)HENNA COMPANYContribution Margin Income StatementCarvings$ Per unitMementos$ Per unitTotalTotalMementos$ Per unitTotalTotalTotal

Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Required information [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 55,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 907,500 726,000 181,500 36,500 $ 145,000 Mementos $ 907,500 90,750 816,750 671,750 $ 145,000

Required information [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 55,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 907,500 726,000 181,500 36,500 $ 145,000 Mementos $ 907,500 90,750 816,750 671,750 $ 145,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...

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Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
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Required Information [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 58,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin 2. Assume that the company expects sales of each product to decline to 41,000 units next year with no change in unit selling price. Prepare a contribution margin Income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Income (loss) Carvings $ 974,400 779,520 194,880 46,880 $ 148,000 Mementos $ 974,400 194,880 779,520 631,520 $ 148,000 Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit…
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