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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 60,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Carvings $ 1,020,000 612,000 408,000 258,000 $ 150,000 Mementos $ 1,020,000 204,000 816,000 666,000 $ 150,000 Income 2. Assume that the company expects sales of each product to decline to 43,000 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.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units $ Per unit Total $ Per unit Total $ 17.00 $ 17.00 $ Total 0 $ 0 $ 10.20 0 $ 3.40 0 0 Sales Variable cost Contribution margin Fixed costs Income (loss) $ 6.80 0 258,000 $ (258,000) 666,000 924,000 (666,000) $ (924,000) $ ! 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 60,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 1,020,000 612,000 408,000 258,000 $ 150,000 Mementos $ 1,020,000 204,000 816,000 666,000 $ 150,000 3. Assume that the company expects sales of each product to increase to 74,000 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.) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units $ Per unit Total $ Per unit Total Total $ 0 $ 0 $ 0 0 0 0 Contribution margin 0 Income (loss) $ 0 $ 0 $ 0

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