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 Carvings $ 787,500 551,250 236,250 111,250 $ 125,000 Mementos $ 787,500 78,750 708,750 583.750 $ 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.)
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 Carvings $ 787,500 551,250 236,250 111,250 $ 125,000 Mementos $ 787,500 78,750 708,750 583.750 $ 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![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
Contribution margin
Income (loss)
Carvings
$ 787,500
551,250
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 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.)
✪-
Mementos
$787,500
78,750
708,750
583,750
$ 125,000
Units
HENNA COMPANY
Contribution Margin Income Statement
Carvings
$ Per unit
Total
Mementos
$ Per unit
Total
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1435a94e-9789-45dd-809c-eabe058f0d5d%2Fd8f6db1c-4928-46e9-b4c5-3f9b5f344b6b%2F5mnvs7_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
Contribution margin
Income (loss)
Carvings
$ 787,500
551,250
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 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.)
✪-
Mementos
$787,500
78,750
708,750
583,750
$ 125,000
Units
HENNA COMPANY
Contribution Margin Income Statement
Carvings
$ Per unit
Total
Mementos
$ Per unit
Total
Total
Transcribed Image Text:3. Assume that the company expects sales of each product to increase to 59,000 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.)
Contribution margin
Income (loss)
HENNA COMPANY
Contribution Margin Income Statement
Carvings
Units
$ Per unit
Total
Mementos
$ Per unit
Total
Total
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