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factories ana markets them througn aiterent channels. tney nave no shared costs. I nis year,...

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Accounting

factories ana markets them througn aiterent channels. tney nave no shared costs. I nis year, the company sold 5o,uu units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution margin
Fixed costs
Income
Carvings
Mementos
$ 929,600
$ 929,600
650,720
185,920
278,880
743,680
132,880
597,680
$ 146,000
$ 146,000
3. Assume that the company expects sales of each product to increase to 70,000 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
Carvings
Units
Total
$ Per unit
Mementos
Total
Total
$ Per unit
Sales
70,000
$
13.28
929,600 g
13.28:
S
929,600
1,859,200
Variable cost
70,000
0
Contribution margin
70,000
Fixed costs
0
Income (loss)
$
0
S
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