Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate...

 

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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 53,000 units of each product. Income statements for each product follow. Carvings Mementos $ $ 863,900 863,900 Sales Variable costs 604,730 86,390 Contribution 259,170 777,510 margin Fixed costs 116,170 634,510 $ $ Income 143,000 143,000 2. Assume that the company expects sales of each product to decline to 36,000 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). Note: Round "per unit" answers to 2 decimal places. 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 53,000 units of each product. Income statements for each product follow. Carvings Mementos $ $ 863,900 863,900 Sales Variable costs 604,730 86,390 Contribution 259,170 777,510 margin Fixed costs 116,170 634,510 $ $ Income 143,000 143,000 2. Assume that the company expects sales of each product to decline to 36,000 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). Note: Round "per unit" answers to 2 decimal places.

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To prepare a contribution margin income statement for the next year we need to calculate the contrib... View the full answer