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Safari File Edit View History Bookmarks Window Help O 92%-, Wed 11:30 AM a E ezto.mheducation.com Yahoo iphone studies dress shoe llbean restauraunts ie313 transfer blanket math accounting vans MyUW 4145 Wisc mail YouTube News Popular Google Aol ESPN CA #31 Chegg Study Guided Solutions and Study Help Chegg.com Probability and Statistic...re (1).pdf AIS 300: Spring 2016: Spring 2016 samuel tiahnybik ACCOUNTING CA #31 instructions I help Student Record for tiahnybi....edu.pdf me Questions 1-3 (of 3) Save & Exit Submit [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 44,000 units of each product. Sales and costs for each product follovw Ge sendback Sales Variable costs Product T Product O $774,400 774,400 154,880 464,640 Contribution margin Fixed costs 309,760 187,760 619,520 497,520 ISyE 315 Lecture Files Zip.h Edition Income before taxes Income taxes (32% rate) 122,000 39,040 122,000 39,040 Net income $ 82,960 82,960 DOC ISyE 315 Syllabus Spring 2...16-6.doc value: Required information 2.00 points 315 hw Required 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage 1464 APR 1

Explanation / Answer

1 Break Even Points in Dollars Fixed Cost/Cotribution margin ratio Contribution Margin ratio Contribution/Sales Product T Contribution Margin ratio 309760/774400 = 40.0% Break Even Points in Dollars 187760/40% = 469400 Product 0 Contribution Margin ratio 619520/774400 = 80.0% Break Even Points in Dollars 497520/80% = 621900 2 Henna Co. Forecast Contribution margin income statement Product T Product O Units $ Per Unit Total $ Per Unit Total Sales 27,000 17.6       475,200 17.6        475,200 Variable Cost 27,000 10.56       285,120 3.52          95,040 Contribution margin 27,000 7.04       190,080 14.08        380,160 Fixed Cost 187760        497,520 Income Before tax           2,320       -117,360 Income tax (32% rate)           742.4      -37,555.2 Net Income           1,578         -79,805 Henna Co. 3 Forecast Contribution margin income statement Product T Product O Units $ Per Unit Total $ Per Unit Total Sales 58,000 17.6    1,020,800 17.6     1,020,800 Variable Cost 58,000 10.56       612,480 3.52        204,160 Contribution margin 58,000 7.04       408,320 14.08        816,640 Fixed Cost 187760        497,520 Income Before tax       220,560        319,120 Income tax (32% rate)      70,579.2        102,118 Net Income       149,981        217,002

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