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 45,000 units of each product. Sales and costs for each product follow.

	Product T					Product O
Sales		$	787,500				$	787,500
Variable costs			551,250					78,750
Contribution margin			236,250					708,750
Fixed costs			111,250					583,750
Income before taxes			125,000					125,000
Income taxes (40% rate)			50,000					50,000
Net income		$	75,000				$	75,000

2. Assume that the company expects sales of each product to decline to 28,000 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 40% tax rate). Also, assume that any loss before taxes yields a 40% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.)