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 43,000 units of each product. Income statements for each product follow.

	Carvings	Mementos
Sales	$ 761,100	$ 761,100
Variable costs	608,880	76,110
Contribution margin	152,220	684,990
Fixed costs	33,220	565,990
Income	$ 119,000	$ 119,000

Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)

PRODUCT CARVINGS
Contribution Margin Ratio
	Numerator:	/	Denominator:
		/		=	Contribution margin ratio
					0
Break-Even Point in Dollars
	Numerator:	/	Denominator:
		/		=	Break-even point in dollars
					0
PRODUCT MEMENTOS
Contribution Margin Ratio
		/		=	Contribution margin ratio
					0
Break-Even Point in Dollars
		/		=	Break-even point in dollars
					0

Assume that the company expects sales of each product to decline to 26,000 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
	Units	Carvings		Mementos		Total
		$ Per unit	Total	$ Per unit	Total
					$0	$0
			0		0	0
Contribution margin
						0
Income (loss)			$0		$0	$0

Assume that the company expects sales of each product to increase to 57,000 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
	Units	Carvings		Mementos		Total
		$ Per unit	Total	$ Per unit	Total
			$0		$0	$0
			0		0	0
Contribution margin
						0
Income (loss)			$0		$0	$0