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 Carvings $ 825,600 577,920 Mementos $ 825,600 165,120 247,680 113,680 660,480 526,480 $ 134,000 $ 134,000 Problem 18-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 31,000 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. HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales 31,000 $ 0 $ 0 Variable cost 31,000 0 0 0 Contribution margin 31,000 Fixed costs Income (loss) $ $ 0 $

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Carvings
$ 825,600
577,920
Mementos
$ 825,600
165,120
247,680
113,680
660,480
526,480
$ 134,000
$ 134,000
Problem 18-4A (Algo) Part 2
2. Assume that the company expects sales of each product to decline to 31,000 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.
HENNA COMPANY
Contribution Margin Income Statement
Carvings
Mementos
Units
Total
$ Per unit
Total
$ Per unit
Total
Sales
31,000
$
0
$
0
Variable cost
31,000
0
0
0
Contribution margin
31,000
Fixed costs
Income (loss)
$
$
0
$
Transcribed Image Text: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 Carvings $ 825,600 577,920 Mementos $ 825,600 165,120 247,680 113,680 660,480 526,480 $ 134,000 $ 134,000 Problem 18-4A (Algo) Part 2 2. Assume that the company expects sales of each product to decline to 31,000 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. HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total Sales 31,000 $ 0 $ 0 Variable cost 31,000 0 0 0 Contribution margin 31,000 Fixed costs Income (loss) $ $ 0 $
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