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Required information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these
Required information [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 51,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 821,100 Mementos $ 821,100 492,660 328,440 187,440 82,110 738,990 597,990 $ 141,000 $ 141,000 2. Assume that the company expects sales of each product to decline to 34,000 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 Units Total $ Per unit Total $ Per unit Total Sales 34,000 $ 0 $ Variable cost 34,000 0 0 0 Contribution margin 34,000 Fixed costs Income (loss) 0 $ 0 $ 0 $ 0
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