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Problem 18-5A Brea-even analysis, different cost structures, and income [The following information applies to the questions displayed below.) Vanna Co. produces and sells two products,

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Problem 18-5A Brea-even analysis, different cost structures, and income [The following information applies to the questions displayed below.) Vanna 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. Sales Varlable costs Product T Product O $787,500 $787,500 78,750 551,250 7 Contribution margin Fixed costs 236,250 708,750 11,250 583,750 Income before taxes Income taxes (40% rate) 125,000 125,000 50,000 50,000 Net income $ 75,000 $ 75,000 References Section Break n 18 5A

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