Problem A Algo Breakeven analysis, different cost structures, and income calculations LO C A P
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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 units of each product. Income statements for each product follow.
Carvings Mementos
Sales $ $
Variable costs
Contribution margin
Fixed costs
Income $ $
Problem A Algo Part
Assume that the company expects sales of each product to increase to 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 decimal places.
