! Required information Problem 21-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [The following information applies to the questions displayed below.] 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 56,000 units of each product. Income statements for each product follow. Mementos $ 929,600 185,920 Carvings $ 929,600 650,720 Contribution margin 278,880 132,880 743,680 597,680 $ 146,000 $ 146,000 Sales Variable costs Fixed costs Income Problem 21-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 39,000 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). Note: Round "per unit" answers to 2 decimal places. HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Problem 21-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 39,000 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). Note: Round "per unit" answers to 2 decimal places. Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Required information Problem 21-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [The following information applies to the questions displayed below.] 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 56,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 929,600 650,720 Mementos $ 929,600 185,920 278,880 132,880 743,680 597,680 $ 146,000 $ 146,000 Problem 21-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 70,000 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). Note: Round "per unit" answers to 2 decimal places. HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales Variable costs Contribution margin Fixed costs Income Carvings Mementos $ 929,600 $ 929,600 650,720 278,880 132,880 185,920 743,680 597,680 $ 146,000 $ 146,000 Problem 21-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 70,000 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). Note: Round "per unit" answers to 2 decimal places. Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total