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 58,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin. Fixed costs Income Contribution margin 2. Assume that the company expects sales of each product to decline to 41,000 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.) Income (loss) Carvings $ 974,400 779,528 Mementos $ 974,400 194,880 194,880 779,520 46,880 631,520 $ 148,000 $ 148,000 Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit $ $ 69 Total 0 0 0 $ $ Total 0 0 0 0

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 58,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin. Fixed costs Income Contribution margin 2. Assume that the company expects sales of each product to decline to 41,000 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.) Income (loss) Carvings $ 974,400 779,528 Mementos $ 974,400 194,880 194,880 779,520 46,880 631,520 $ 148,000 $ 148,000 Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit $ $ 69 Total 0 0 0 $ $ Total 0 0 0 0

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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