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 54,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $885,600 531,360 354,240 210, 240 $ 144,000 Mementos $ 885,600 177,120 708,480 564,480 $ 144,000
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 54,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $885,600 531,360 354,240 210, 240 $ 144,000 Mementos $ 885,600 177,120 708,480 564,480 $ 144,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
![[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 54,000
units of each product. Income statements for each product follow.
Variable costs
Contribution margin
Carvings
$885,600
Problem 21-4A (Algo) Part 3
Income (osE)
531,360
354,248
218,240
$ 144,000
Mementos
$885,600
177, 120
3. Assume that the company expects sales of each product to increase to 68,000 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.
708,480
564,480
$ 144,000
Units
HENNA COMPANY
Contribution Margin Income Statement
Carvings
$ Per unit
Mementos
$ Per unit
3
Total
Prav
55
10
C
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Transcribed Image Text:[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 54,000
units of each product. Income statements for each product follow.
Variable costs
Contribution margin
Carvings
$885,600
Problem 21-4A (Algo) Part 3
Income (osE)
531,360
354,248
218,240
$ 144,000
Mementos
$885,600
177, 120
3. Assume that the company expects sales of each product to increase to 68,000 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.
708,480
564,480
$ 144,000
Units
HENNA COMPANY
Contribution Margin Income Statement
Carvings
$ Per unit
Mementos
$ Per unit
3
Total
Prav
55
10
C
Next
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