Assume that the company expects sales of each product to increase to 56,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year.  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 42,000 units of each product. Income statements for each product follow.     Carvings Mementos Sales $ 747,600 $ 747,600 Variable costs 523,320 149,520 Contribution margin 224,280 598,080 Fixed costs 108,280 482,080 Income $ 116,000 $ 116,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume that the company expects sales of each product to increase to 56,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year. 

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 42,000 units of each product. Income statements for each product follow.
 

  Carvings Mementos
Sales $ 747,600 $ 747,600
Variable costs 523,320 149,520
Contribution margin 224,280 598,080
Fixed costs 108,280 482,080
Income $ 116,000 $ 116,000

 

Contribution margin
Income (loss)
HENNA COMPANY
Contribution Margin Income Statement
Carvings
Units
$ Per unit
$
GA
$
Total
0
0
0
Mementos
$ Per unit
$
$
Total
0 $
0
0 $
Total
0
0
0
0
Transcribed Image Text:Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ GA $ Total 0 0 0 Mementos $ Per unit $ $ Total 0 $ 0 0 $ Total 0 0 0 0
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