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 58,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin. Fixed costs Income Contribution margin 2. Assume that the company expects sales of each product to decline to 41,000 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) Carvings $ 974,400 779,528 Mementos $ 974,400 194,880 194,880 779,520 46,880 631,520 $ 148,000 $ 148,000 Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit $ $ 69 Total 0 0 0 $ $ Total 0 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 58,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin. Fixed costs Income Contribution margin 2. Assume that the company expects sales of each product to decline to 41,000 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) Carvings $ 974,400 779,528 Mementos $ 974,400 194,880 194,880 779,520 46,880 631,520 $ 148,000 $ 148,000 Units HENNA COMPANY Contribution Margin Income Statement Carvings $ Per unit $ Total 0 0 Mementos $ Per unit $ $ 69 Total 0 0 0 $ $ Total 0 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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