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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 have no shared costs. This year, the company sold 46,000 units of each product. Income statements for each product follow.

Sales

Variable costs

Contribution margin

Fixed costs

Income

Carvings

Mementos

$ 800,400 $ 800,400

640.320

160.080

160,080

640,320

32.080

512,320

$ 128,000

$ 128,000

2. Assume that the company expects sales of each product to decline to 29,000 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.