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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

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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 48,000 units of each product. Sales and costs for each product follow. Sales Variable costa Contribution margin Fixed costs Income before taxes Income taxes (32 rate) Net income Product T $825,600 577.920 247,680 113,680 134,000 42,880 $ 91,120 Product O $825,600 265, 120 660,480 526,480 134,000 42,880 $ 91,120 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Product Contribution Margin Ratio Choose Numerator Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break Even Point in Dollars Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars Break-even point in dollars 0 Producto Contribution Margin Ratio Contribution margin ratio Break-Even Point In Dollars Break-even point in dollars 0 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 48,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Yixed costs Income before taxes Income taxes (329 rate) Net income Product $825,600 577.920 247,680 113.680 134,000 42,880 $ 91,120 Producto $825,600 165, 120 660,480 526,480 134,000 42,880 $ 91,120 2. Assume that the any expects sales of each product to decline to 31,000 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 32% tax rate). Also, assume that any loss before taxes yields a 32% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.) HENNA CO Forecasted Contribution Margin Income Statement Product Producto Units $ Per unit Total $ Per unit Total $ Total 0 $ 0 0 0 Contribution margin 0 0 0 Net income (105)

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