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 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 Contribution margin 2. Assume that the company expects sales of each product to decline to 40,000 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.) Income (loss) Carvings $ 951,900 571,140 380,760 233,760 $ 147,000 Units Mementos $ 951,900 95, 190 856,710 709, 710 $ 147,000 HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit $ $ Total 0 0 $ 0 $ Total 0 0 0 0