4a

Required information [The following information applies to the questions displayed below]. Henna Company produces and sells two products, Garvings and Mementos. It manufactures these products in separate factories and markets them through different channeis. They have no shared costs. This year, the company sold 50,000 . units of each product. Income statements for each product follow. Required: 1. Compute the break-even point in dollar sales for each product. Note: Enter CM ratio as percentage rounded to 2 decimal places. 2. Assume that the company expects sales of each product to decline to 30,000 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). 3. Assume that the company expects sales of each product to increase to 60,000 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)