!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 separatefactories and markets them through different channels. They have no shared costs. This year, the company sold 51,000units of each product. Income statements for each product follow.SalesVariable costsContribution marginFixed costsIncomeCarvings$ 821,100492,660328,440187,440SalesVariable costContribution marginFixed costsIncome (loss)Mementos$ 821,10082,110738,990597,990$ 141,000 $ 141,0002. Assume that the company expects sales of each product to decline to 34,000 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.)UnitsHENNA COMPANYContribution Margin Income StatementCarvings34,00034,00034,000$ Per unit$Total00Mementos$ Per unit$$Total0 $O0 $TotalOO0O

The contribution margin is calculated as the difference between the sales and variable costs. The…

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 51,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 821,100 492,660 328,440 Mementos $ 821,100 82,110 738,990 187,440 597,990 $ 141,000 $ 141,000 2. Assume that the company expects sales of each product to decline to 34,000 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 51,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 821,100 492,660 328,440 Mementos $ 821,100 82,110 738,990 187,440 597,990 $ 141,000 $ 141,000 2. Assume that the company expects sales of each product to decline to 34,000 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.)

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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