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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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $774,400 464,640 Mementos $ 274,400 154,800 619,520 497,520 309,760 187,760 $ 122,000 $ 122,000 2. Assume that the company expects sales of each product to decline to 27,000 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 Memantos Total

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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $774,400 464,640 Mementos $ 274,400 154,800 619,520 497,520 309,760 187,760 $ 122,000 $ 122,000 2. Assume that the company expects sales of each product to decline to 27,000 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 Memantos Total

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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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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Incom Contribution margin Carvings $ 774,400 Income (loss) 464,640 309,760 107,760 $ 122,000 2. Assume that the company expects sales of each product to decline to 27,000 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. Mementos $774,400 154,880 619,520 497,520 $122.000 Units HENNA COMPANY Contribution Margin Income Statement Carvings S 0 0 Mementos S S Total 0 $ 0 0 $ Total 0 0 D 0
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 44,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Incom Contribution margin Carvings $ 774,400 Income (loss) 464,640 309,760 107,760 $ 122,000 2. Assume that the company expects sales of each product to decline to 27,000 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. Mementos $774,400 154,880 619,520 497,520 $122.000 Units HENNA COMPANY Contribution Margin Income Statement Carvings S 0 0 Mementos S S Total 0 $ 0 0 $ Total 0 0 D 0
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