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 Carvings $ 813, 100 487, 860 325, 240 194,240 $ 131,000 2. Assume that the company expects sales of each product to decline to 30,000 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) Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ Total 0 0 Mementos $ Per unit $ Total 0 $ 0 0 $ Total 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 47,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution margin Carvings $ 813, 100 487, 860 325, 240 194,240 $ 131,000 2. Assume that the company expects sales of each product to decline to 30,000 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) Mementos $ 813, 100 81, 310 731, 790 600, 790 $ 131,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units $ Per unit $ Total 0 0 Mementos $ Per unit $ Total 0 $ 0 0 $ Total 0 0 0

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

Problem 12E: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the...

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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 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Fixed costs Income (loss) Carvings $ 863,900 604,730 259, 170 116,170 $ 143,000 $ 143,000 2. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in uni selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each the two products). (Round "per unit" answers to 2 decimal places.) Units Mementos $ 863,900 86,390 777,510 634,510 HENNA COMPANY Contribution Margin Income Statement Carvings 36,000 36,000 36,000 $ Per unit 69 $ Total 0 0 Mementos $ Per unit $ $ EA Total 0 0 0 $ HA $ Total 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 46,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Mementos $ 800,400 160,080 640,320 512,320 $ 128,000 $ 128,000 Fixed costs Sales Variable cost Carvings $ 800,400 640,320 160,080 32,080 3. Assume that the company expects sales of each product to increase to 60,000 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 Contribution Margin Income Statement Carvings Units $ Per unit $ $ Total 0 0 0 Mementos $ Per unit $ $ Total 0 $ 0 0 $ Total 0 0 0 0
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Henna Co. produces and sells two products, T and O. 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. Sales and costs for each product follow. Product T Product O Sales $ 974,400 $ 974,400 Variable costs 779,520 194,880 Contribution margin 194,880 779,520 Fixed costs 46,880 631,520 Income before taxes 148,000 148,000 Income taxes (32% rate) 47,360 47,360 Net income $ 100,640 $ 100,640 3. Assume that the company expects sales of each product to increase to 72,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). (Round "per unit" answers to 2…
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 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 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.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…
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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Contribution Margin Ratio Numerator: Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Break-Even Point in Dollars Numerator: Contribution Margin Ratio 1 1 1 Carvings $ 774,400 464, 640 309,760 187,760 $ 122,000 1 Mementos $ 774,400 154,880 619,520 497,520 $ 122,000 PRODUCT CARVINGS Denominator: Denominator: PRODUCT MEMENTOS = || Contribution margin ratio Break-even point in dollars Contribution margin ratio 0 0