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ces ic raw ill Problem 18-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [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 48,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Problem 18-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 62,000 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.) Sales Variable cost Contribution margin Carvings Mementos $ 825,600 $ 825,600 577,920 165,120 247,680 660,480 113,680 526,480 $ 134,000 $ 134,000 Fixed costs Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit Total S Per unit 62,000 $ 12.04 $ 746,480 $ 62,000 62,000 Units $ 0 0 Mementos Total Total 3.44 $213,280 $959.760 $ 0 0 $ < Prev 0 0 0 35 6 of 8 Next > Ch

ces ic raw ill Problem 18-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [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 48,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Problem 18-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 62,000 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.) Sales Variable cost Contribution margin Carvings Mementos $ 825,600 $ 825,600 577,920 165,120 247,680 660,480 113,680 526,480 $ 134,000 $ 134,000 Fixed costs Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit Total S Per unit 62,000 $ 12.04 $ 746,480 $ 62,000 62,000 Units $ 0 0 Mementos Total Total 3.44 $213,280 $959.760 $ 0 0 $ < Prev 0 0 0 35 6 of 8 Next > Ch

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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nces ic raw ill Problem 18-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [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 48,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Problem 18-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 62,000 units next year with no change in unit selling price. epare 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.) Fixed costs Income (loss) Carvings $ 825,600 577,920 247,680 660,480 526,480 113,680 $ 134,000 $ 134,000 Mementos $ 825,600 165,120 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit 12.04 $ 62,000 $ 62,000 62,000 $ Total $ Per unit 746,480 $ 0 Mementos 0 3.44 $ $ Total 213,280 0 0 $ $ < Prev Total 959,760 0 e 0 SLO of 8 # Next > Ch
Transcribed Image Text:nces ic raw ill Problem 18-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [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 48,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Problem 18-4A (Algo) Part 3 3. Assume that the company expects sales of each product to increase to 62,000 units next year with no change in unit selling price. epare 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.) Fixed costs Income (loss) Carvings $ 825,600 577,920 247,680 660,480 526,480 113,680 $ 134,000 $ 134,000 Mementos $ 825,600 165,120 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit 12.04 $ 62,000 $ 62,000 62,000 $ Total $ Per unit 746,480 $ 0 Mementos 0 3.44 $ $ Total 213,280 0 0 $ $ < Prev Total 959,760 0 e 0 SLO of 8 # Next > Ch
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