31 Required informatio 2 of 3 [The following information applies to the questions displayed below. Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 43,000 units of each product. Sales and costs for each product follow Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $761,100 608,880 152,220 33,220 119,000 35,700 $83,300 Product o $761,100 76,110 684,990 565,990 119,000 35,700 $83,300 2. Assume that the company expects sales of each product to decline to 26,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 30% tax rate). Also, assume that any loss before taxes yields a 30% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits. if any, as negative values.) 2. Assume that the company expects sales of each product to decline to 26,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 30% tax rate). Also, assume that any loss before taxes yields a 30% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.) Answer is complete but not entirely correct HENNA Co Forecasted Contribution Margin Income Statement ProductT Product O Total Units $ Per unit Total $ Per unit Total 26,00029.27 761,020 29.27 $ 761,020 76,180 684,840 Sales Variable cost Contribution margin Fixed costs Income before taxes Income taxes (tax benefit) Net income (loss) 1,522,040 685,100 836,940 565,990599,210 237,730 26,00023.42608,9202.93 26,000 $5.85 152,100 $ 26.34 33,220 118,880 35,700 83,180 118,850 35,700