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 55,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution Margin Ratio Numerator: Break-Even Point in Dollars Numerator: Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Contribution Margin Ratio Break-Even Point in Dollars I Carvings $ 907,500 726,000 181,500 36,500 $ 145,000 $ 145,000 Mementos $ 907,500 90,750 Denominator: 816,750 671,750 PRODUCT CARVINGS Denominator: PRODUCT MEMENTOS = = Contribution margin ratio Break-even point in dollars Contribution margin ratio Break-even point in dollars 2. Assume that the company expects sales of each product to decline to 38,000 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.) Contribution margin Income (loss) Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit Total Mementos $ Per unit Total Total 3. Assume that the company expects sales of each product to increase to 69,000 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.) Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit Total Mementos $ Per unit Total Total