Problem 18-5A Breakeven analysis, different cost structures, and income calculations LO C2, A1, P4 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 45,000 units of each product Sales and costs for each product follow Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (40% rate) Net Income Product $ 787,500 551, 250 236,250 111,250 125,000 50.800 $ 75,000 Producto 5 787,500 75,750 705,75e 583,750 125,000 50.000 $ 75,000 Problem 18-5A Part 1 Required: 1. Compute the break-even point in dollar sales for each product (Enter CM rotlo as percentage rounded to 2 decimal places) Products Contibution Margin Ratio Choose Numerston Choose Denominator Contribution Margin Ratio Contribution marginal Break Lyen Poinun Dollars Choose Numerator Choose Denominato Urvak Ever Point in Dollars Beoak even point in dollars Producto Contrition Margin Ratio Conirbution marginal Break Lyn Pointin Dallas Break-even point in dollars Henna Co produces and sells two products, Tando. 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 Variable costs Contribution margin Fixed costs Inces before taxes Income taxes (40% rate) Net Income Product 5 787,500 55250 236,250 111 25 125,000 50.000 $ 25,000 Producto 5 787,500 78.250 705,750 583,750 125.000 50,000 $ 75,000 Problem 18-5A Part 2 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, os negative values.) HENNA CO Forecasted Contribution Margin Income Statement Product Producto Units Per un Total Perunt Total Total Contribution margin Net Income (los)