Question
Please help!! Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels.
Please help!!
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.
1 a. Compute the break-even point in dollar sales for each product.
1 B. 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.
1C. Assume that the company expects sales of each product to increase to 69,000 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 30% tax rate).
Henna Co. produces and sells two products, T and O. it hmanuractures these proqucts in separate Tactores 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 90,750 816,750 Contribution margin 181,500 36,500 Fixed costs 671,750 Income before taxes 145,000 43,500 145,000 43,500 Income taxes (32% rate) $101,500 $101,500 Net income Product T Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio Break-even point in dollars Choose Numerator: Choose Denominator: Break-Even Point in Dollars Break-even point in dollars Product O Contribution Margin Ratio Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars 0 HENNA CO. Forecasted Contribution Margin Income Statement Product T Product O Total $ Per unit $ Per unit Units Total Total C C 0 Contribution margin 0 Net income (loss) C HENNA CO. Forecasted Contribution Margin Income Statement Product T Product O Total $ Per unit $ Per unit Units Total Total $ 0 C C 0 C C Contribution margin 0 0 Net income (loss) 0Step by Step Solution
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