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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
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 42,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Mementos $ 747,600 149,520 598,080 482,080 Carvings $ 747,600 523,320 224,280 108,280 $ 116,000 $ 116,000 Problem 18-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 56,000 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). (Rour "per unit" answers to 2 decimal places.) Contribution margin Fixed costs Sales Variable cost Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total
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