Required information Problem 21-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [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 40,000 units of each product. Income 'statements for each product follow. Sales Carvings $ 720,000 Variable costs 576,000 Contribution margin 144,000 Mementos $ 720,000 144,000 576,000 Fixed costs 34,000 466,000 Income $110,000 $110,000 Contribution Margin Ratio Numerator: PRODUCT CARVINGS Denominator: Sales Break-Even Point in Dollars Numerator: I Denominator: PRODUCT MEMENTOS Contribution Margin Ratio Break-Even Point in Dollars = Contribution margin ratio Break-even point in dollars = Contribution margin ratio = Break-even point in dollars wwwwww. Problem 21-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 23,000 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 COMPANY Contribution Margin Income Statement Carvings Units $ Per unit Mementos Total Total $ Per unit Total Contribution margin: Income (loss) Problem 21-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 54,000 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 margin Income (loss) HENNA COMPANY Contribution Margin Income Statement i Carvings Mementos Total Units $ Per unit Total $ Per unit Total $ 0 $ 0 $ 0 0 0 0 + 0 $ 0 $ 0 $ 0