Henna Company produces and sells two products, Carvings and Mementos. It manufactures theseproducts in separate factories and markets them through different channels. They have no shared costs.This year, the company sold 53,000 units of each product. Income statements for each product follow.SalesVariable costsContribution marginFixed costsIncomeSalesVariable costContribution marginFixed costsIncome (loss)Carvings$ 863,900604,730259, 170116,170$ 143,000 $ 143,0002. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in uniselling price. Prepare a contribution margin income statement for the next year (as shown above with columns for eachthe two products). (Round "per unit" answers to 2 decimal places.)UnitsMementos$ 863,90086,390777,510634,510HENNA COMPANYContribution Margin Income StatementCarvings36,00036,00036,000$ Per unit69$Total00Mementos$ Per unit$$EATotal000$HA$Total0000

Contribution margin takes into consideration only variable expenses of the business while net income…

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 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Fixed costs Income (loss) Carvings $ 863,900 604,730 259, 170 116,170 $ 143,000 2. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in un selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for ea the two products). (Round "per unit" answers to 2 decimal places.) Units Mementos $ 863,900 86,390 777,510 634,510 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings 36,000 36,000 36,000 $ Per unit Total 0 0 Mementos $ Per unit $ EA Total 0 $ 0 0 69 Total O 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 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Sales Variable cost Contribution margin Fixed costs Income (loss) Carvings $ 863,900 604,730 259, 170 116,170 $ 143,000 2. Assume that the company expects sales of each product to decline to 36,000 units next year with no change in un selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for ea the two products). (Round "per unit" answers to 2 decimal places.) Units Mementos $ 863,900 86,390 777,510 634,510 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings 36,000 36,000 36,000 $ Per unit Total 0 0 Mementos $ Per unit $ EA Total 0 $ 0 0 69 Total O 0 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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