Henna co. produces and sells two products, T and O.

Required information 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 50,000 units of each product. Sales and costs for each product follow. f 3 Sales Variable costs Contribution margin Fixed costs Incone before taxe8 Income taxes (328 rate) Net income Product T $2,000,000 1,600,000 400,000 125,000 275, 000 2,000, 000 250,000 1,750,000 475,000 275, 000 88,000 $ 187,000 $ 187,000 2. Assume that the company expects sales of each product to decline to 30,000 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. (Enter losses and tax benefits, if any, as negative values.) HENNA Co Forecasted Contribution Margin Income Statement Product T Product O Total Units $ Per unit Total $ Per unit Total Sales 30,000 66.6 1,999,800S66.66 1,999,800 $3,999,800 2. Assume that the company expects sales of each product to decline to 30,000 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. (Enter losses and tax benefits, if any, as negative values.) HENNA CO. Forecasted Contribution Margin Income Statement Product T Product O Total Units $ Per unit Total $ Per unit Total Sales Variable cost Contribution margin Fixed costs Income (Loss) before taxes ncome taxes (tax benefit) Net income (loss) 0,000 66.66 1,999,800 66.6,999,800 3,999,600 30,000 53.33 1,599,900 S 8.33 49,900,849,800 1,749,900 2,149,800 1,475,000 ,600,000 274,900 30,000 1333 399,900 58.33 125,000 274,900 87,968 186,932 87,968 3. Assume that the company expects sales of each product to increase to 60,000 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). HENNA CO Forecasted Contribution Margin Income Statement Product T Product O Total Units S Per unit Total$ Per unit Total Sales 60,000 cost Contribution margin Fixed costs Income before taxes Income taxes (tax benefit) Net income (loss)