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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

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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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 774,400 Mementos $ 774,400 464,640 309,760 187,760 154,880 619,520 497,520 $ 122,000 $ 122,000 Problem 21-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 27,000 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.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Total Units $ Per unit Total $ Per unit Total Sales 27,000 $ 0 $ 0 Variable cost 27,000 0 0 0 Contribution margin 27,000 Fixed costs 0 $ 0 $ 0 $ 0 Income (loss)

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