! 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 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 787,500 551,250 Mementos $ 787,500 78,750 236,250 111,250 708,750 583,750 $ 125,000 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 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.)
! 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 45,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Carvings $ 787,500 551,250 Mementos $ 787,500 78,750 236,250 111,250 708,750 583,750 $ 125,000 $ 125,000 2. Assume that the company expects sales of each product to decline to 28,000 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.)
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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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 45,000
units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution margin
Fixed costs
Income
Carvings
$ 787,500
551,250
236,250
111,250
Mementos
$ 787,500
78,750
708,750
583,750
$ 125,000
$ 125,000
2. Assume that the company expects sales of each product to decline to 28,000 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
Total
$ Per unit
Total
$ Per unit
Total
Sales
28,000
$
0 $
0
Variable cost
28,000
0
0
0
Contribution margin
28,000
Fixed costs
Income (loss)
0
$
0
$
0 $
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9ad001e2-8b71-4bea-a600-233a334063dc%2Fd3144dcb-8bf7-4d9b-b2ca-fd408728cf43%2Fuczhwho_processed.png&w=3840&q=75)
Transcribed Image Text:!
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 45,000
units of each product. Income statements for each product follow.
Sales
Variable costs
Contribution margin
Fixed costs
Income
Carvings
$ 787,500
551,250
236,250
111,250
Mementos
$ 787,500
78,750
708,750
583,750
$ 125,000
$ 125,000
2. Assume that the company expects sales of each product to decline to 28,000 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
Total
$ Per unit
Total
$ Per unit
Total
Sales
28,000
$
0 $
0
Variable cost
28,000
0
0
0
Contribution margin
28,000
Fixed costs
Income (loss)
0
$
0
$
0 $
0
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