The computation of the break-even point in dollar sales for each product is as follows:
Carvings = $234,400 ($46,880/0.2)
Mementos = $789,400 ($631,520/0.8)
<h3>What is the break-even point?</h3>
The break-even point represents the dollar sales or units at which the entity does not incur any loss or earn any profit.
At the break-even point, the total costs are equal to the total revenue.
<h3>Data and Calculations:</h3>
Carvings Mementos
Sales $ 974,400 $ 974,400
Variable costs 779,520 194,880
Contribution margin 194,880 779,520
CM Ratio 20% 80%
Fixed costs 46,880 631,520
Income $ 148,000 $ 148,000
Break-even point = Fixed costs/CM Ratio
Thus, the break-even points in sales dollars are Carvings, $234,400,, and Mementos, $789,400.
Learn more about the break-even point at brainly.com/question/15281855
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