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 55,000 units of each product. Sales and costs for each product follow.

	Product T				Product O
Sales		$	907,500			$	907,500
Variable costs			726,000				90,750
Contribution margin			181,500				816,750
Fixed costs			36,500				671,750
Income before taxes			145,000				145,000
Income taxes (30% rate)			43,500				43,500
Net income		$	101,500			$	101,500

1. Compute the break even point in dollar sales for each product

Product T and Product 0

2. Assume that the company expects sales of each product to decline to 38,000 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 30% tax rate). Also, assume that any loss before taxes yields a 30% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.)