Question
Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They
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 57,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 951,900 Mementos $ 951,900 571,140 380,760 233,760 95,190 856,710 709,710 $ 147,000 $ 147,000 3. Assume that the company expects sales of each product to increase to 71,000 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.) Sales Variable cost Contribution margin Fixed costs Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total S Per unit Total $ 0 $ 0 $ 0 0 0 0 0 $ 0 $ 0 $ 0
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