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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 products

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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 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 $ 821,100 492,660 328,440 187,440 $ 141,000 Mementos $ 821,100 82, 110 738,990 597,990 $ 141,000 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) PRODUCT CARVINGS Contribution Margin Ratio Numerator: Contribution margin Denominator: 1 / Sales Contribution margin ratio 0 Break-Even Point in Dollars Numerator: 1 Denominator: 11 Break-even point in dollars 0 PRODUCT MEMENTOS Contribution Margin Ratio 7 11 Contribution margin ratio 0 Break-Even Point in Dollars 7 !! Break-even point in dollars 0 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 S Per unit Total S Per unit Total $ Total 0 CA 0 0 0 0 0 Contribution margin 0 Income (loss) $ 0 GA $ 0 $ 0 3. Assume that the company expects sales of each product to increase to 65,000 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 S Per unit Total S Per unit Total $ 0 $ Total 0 $ 0 0 0 0 Contribution margin 0 Income (loss) $ 0 $ 0 $ 0

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