Henna Co. 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 50,000 units of each product. Income statements for each product follow.

Carvings Mementos Saks .............. $2,000,000 9.000.000 Valiable costs ....... 1.600.000 250.000 Contribution margin . . 400.000 1.750.000 Filed costs ......... 125.!!!) 'I #75000 Income. ............ $ 275.000 $ 275.000 Required 1. Compute the break-even point in dollar sales for each product. 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). 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). Check (3) Income: Carvings, $3 5 5,000; Mementos, $6 2 5,000 Analysis Component 4. If sales of each product decrease to 30,000 units, which product would experience a greater decrease in income