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 54,000 units of each product. Sales and costs for each product follow.

3. Assume that the company expects sales of each product to increase to 68,000 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 shown with columns for each of the two products (assume a 32% tax rate). (Round "per unit" answers to 2 decimal places.)

Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (324 rate) Net income Product 1 $885,600 531, 360 354,240 210,240 144,000 46,080 $ 97,920 Product O $885, 600 177, 120 708, 480 564, 480 144,000 46,080 $ 97, 920 HENNA CO. Forecasted Contribution Margin Income Statement Product I Producto Units $ Per unit Total $ Per unit Total Total Contribution margin Net income (loss)