factories ana markets them througn aiterent channels. tney nave no shared costs. I nis year, the company sold $5$o$,$uu units of each product. Income statements for each product follow.

Sales

Variable costs

Contribution margin

Fixed costs

Income

Carvings

Mementos

$ $929,600$

$ $929,600$

$650,720$

$185,920$

$278,880$

$743,680$

$132,880$

$597,680$

$ $146,000$

$ $146,000$

$3.$ Assume that the company expects sales of each product to increase to $70,000$ 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

Total

$ Per unit

Mementos

Total

Total

$ Per unit

Sales

$70,000$

$

$13\mathrm{.}28$

$929,600$ g

$13\mathrm{.}28$:

S

$929,600$

$1,859,200$

Variable cost

$70,000$

$0$

Contribution margin

$70,000$

Fixed costs

$0$

Income $($loss$)$

$

$0$

S