Problem 5-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2...

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Accounting

Problem 5-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2
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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 57,000 units of each product. Income statements for each product follow.
Carvings Mementos
Sales $ 951,900 $ 951,900
Variable costs 571,14095,190
Contribution margin 380,760856,710
Fixed costs 233,760709,710
Income $ 147,000 $ 147,000
Problem 5-4A (Algo) Part 3
3. Assume that the company expects sales of each product to increase to 71,000 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.

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