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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 47,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 813, 100 487,860 325, 240 194, 240 $ 131,000 Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 3. Assume that the company expects sales of each product to increase to 61,000 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.)

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 47,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 813, 100 487,860 325, 240 194, 240 $ 131,000 Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 3. Assume that the company expects sales of each product to increase to 61,000 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.)

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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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 47,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 $ 131,000 3. Assume that the company expects sales of each product to increase to 61,000 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 $ 813, 100 487, 860 325, 240 194, 240 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ $ Total 0 0 Mementos $ Per unit $ $ Total 0 0 0 $ $ Total 0 0 0 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 47,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 $ 131,000 3. Assume that the company expects sales of each product to increase to 61,000 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 $ 813, 100 487, 860 325, 240 194, 240 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ $ Total 0 0 Mementos $ Per unit $ $ Total 0 0 0 $ $ Total 0 0 0 0
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Income statement: It implies to a financial statement of the business that reflects the total revenue earned and expenses borne by it during a specified period of accounting. It shows the net profits earned by the business for the related accounting period. 

 

 

 

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