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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: 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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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa5d5de3-f8e4-43a7-840c-9d47a80d068c%2F5a7c917e-05b4-4ee2-b811-84203777cc29%2Fdm762fa_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 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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