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 50,000 units of each product Income statements for each product follow Carvings Mementos Sales $ 2,000,000 $ 2,000,000 Variable costs 1,600,000 250,000 Contribution margin 400,000 1,750,000 Fixed costs 125,000 1,475,000 Income $ 275,000 $ 275,000 Required 1 Compute the break even point in dollar sales for each product (Show CM ratio as percentage rounded to 3 decimal places ) 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) Based solely on part 2, assume that one of the products shows a net loss Detail how many additional units of that product woud need to be sold in order for it to break even 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) YOU MUST SHOW ALL OF YOUR COMPUTATIONS, APPROPRIATELY LABELED UPLOAD YOUR SOLUTION AS PROVIDED 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 50,000 units of each product Income statements for each product follow Carvings Mementos Sales $ 2,000,000 $ 2,000,000 Variable costs 1,600,000 250,000 Contribution margin 400,000 1,750,000 Fixed costs 125,000 1,475,000 Income $ 275,000 $ 275,000 Required 1 Compute the break even point in dollar sales for each product (Show CM ratio as percentage rounded to 3 decimal places YOU MUST SHOW ALL OF YOUR COMPUTATIONS, APPROPRIATELY LABELED UPLOAD YOUR SOLUTION AS PROVIDED

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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

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

	Carvings	Mementos
Sales	$ 2,000,000	$ 2,000,000
Variable costs	1,600,000	250,000
Contribution margin	400,000	1,750,000
Fixed costs	125,000	1,475,000
Income	$ 275,000	$ 275,000

Required: 1. Compute the break-even point in dollar sales for each product. (Show CM ratio as percentage rounded to 3 decimal places.)

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).
Based solely on part 2, assume that one of the products shows a net loss. Detail how many additional units of that product woud need to be sold in order for it to break-even.
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).

YOU MUST SHOW ALL OF YOUR COMPUTATIONS, APPROPRIATELY LABELED. UPLOAD YOUR SOLUTION AS PROVIDED.

	Carvings	Mementos
Sales	$ 2,000,000	$ 2,000,000
Variable costs	1,600,000	250,000
Contribution margin	400,000	1,750,000
Fixed costs	125,000	1,475,000
Income	$ 275,000	$ 275,000