Accounting 2 question, 5 stars for correct answer Thanks Problem 18 5A Break even analysis, different cost structures, and income calculations LO C2, A1, P4 The following information applies to the questions displayed below Vanna 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 40,000 units of each product Sales and costs for each product follow Product T Product O Sales $ 720,000 $ 720,000 Variable costs 576,000 144,000 Contribution margin 144,000 576,000 Fixed costs 34,000 466,000 Income before taxes 110,000 110,000 Income taxes (32 rate) 35,200 35,200 Net income $ 74,800 $ 74,800 Problem 18 5A Part 3 3 Assume that the company expects sales of each product to increase to 54,000 units next year with no change in unit sales price Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32 tax rate) (Enter all values as positive )

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Accounting 2 question, 5 stars for correct answer. Thanks! Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following

Accounting 2 question, 5 stars for correct answer. Thanks!

Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4

[The following information applies to the questions displayed below.]

Vanna 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 40,000 units of each product. Sales and costs for each product follow.

Product T

Product O

Sales

720,000

Variable costs

576,000

144,000

Contribution margin

144,000

576,000

Fixed costs

34,000

466,000

Income before taxes

110,000

Income taxes (32% rate)

35,200

Net income

74,800

Problem 18-5A Part 3

Assume that the company expects sales of each product to increase to 54,000 units next year with no change in unit sales price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). (Enter all values as positive.)