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 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Carvings Mementos $ $ 787,500 787,500 551, 250 78,750 708,750 583,750 Fixed costs Income (loss) 236,250 111,250 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 units next year with no change in L selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for e of the two products). (Round "per unit" answers to 2 decimal places.) $ 125,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit Total 28,000 $17.50 $490,000 28,000 28,000 $ 0 0 Mementos $ Per unit $17.50 $ 490,000 $ Total 0 Total 980,000 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 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Carvings Mementos $ $ 787,500 787,500 551, 250 78,750 708,750 583,750 Fixed costs Income (loss) 236,250 111,250 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 units next year with no change in L selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for e of the two products). (Round "per unit" answers to 2 decimal places.) $ 125,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit Total 28,000 $17.50 $490,000 28,000 28,000 $ 0 0 Mementos $ Per unit $17.50 $ 490,000 $ Total 0 Total 980,000 0 0 $ 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format ? And Fast Answering Please ? And Please explain proper steps by Step.
![Required information
[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 45,000 units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution
margin
Fixed costs
Income
Sales
Variable cost
Contribution margin
Carvings Mementos
$
787,500 787,500
551,250 78,750
236,250 708,750
111,250
583,750
Fixed costs
Income (loss)
$
125,000
2. Assume that the company expects sales of each product to decline to 28,000 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.)
$
125,000
HENNA COMPANY
Contribution Margin Income Statement
Carvings
Units
$ Per
unit
28,000 $17.50
28,000
28,000
Total
$490,000
$
0
0
Mementos
$ Per
Total
unit
$17.50 $490,000
0
Total
980,000
0
0 $
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b8e1547-f0e2-45fd-b208-f2c216f27c1a%2Feb2d4a39-3f1e-48ce-a3cb-0a174d1a6608%2Fpvflqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 45,000 units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution
margin
Fixed costs
Income
Sales
Variable cost
Contribution margin
Carvings Mementos
$
787,500 787,500
551,250 78,750
236,250 708,750
111,250
583,750
Fixed costs
Income (loss)
$
125,000
2. Assume that the company expects sales of each product to decline to 28,000 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.)
$
125,000
HENNA COMPANY
Contribution Margin Income Statement
Carvings
Units
$ Per
unit
28,000 $17.50
28,000
28,000
Total
$490,000
$
0
0
Mementos
$ Per
Total
unit
$17.50 $490,000
0
Total
980,000
0
0 $
0
0
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