[The following information applies to the questions displayed below] Henna Company produces and sells two products,...

Transcribed Image Text:

[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 54,000 units of each product. Income statements for each product follow. Sales inces Variable costs Contribution margin Fixed costs Income Carvings $ 885,600 531,360 Mementos $885,600 354,240 177,120 708,450 210,240 564,480 $144,000 5 144,000 3. Assume that the company expects sales of each product to increase to 68,000 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 Contribution Margin Income Statement Carvings Units $ Per unit Mementos Total Total $ Per unit Total Contribution margin Income (loss) [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 54,000 units of each product. Income statements for each product follow. Sales inces Variable costs Contribution margin Fixed costs Income Carvings $ 885,600 531,360 Mementos $885,600 354,240 177,120 708,450 210,240 564,480 $144,000 5 144,000 3. Assume that the company expects sales of each product to increase to 68,000 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 Contribution Margin Income Statement Carvings Units $ Per unit Mementos Total Total $ Per unit Total Contribution margin Income (loss)