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Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 IThe following information applies to the questions displayed below] Henna Co.
Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 IThe 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 42,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Product T Product O $ 747,600 747,600 523,320 149,520 224,280 598,080 108,280 482,080 Fixed costs Income before taxes Income taxes (35% rate) 116,000 40,600 116,000 40,600 Net income $75,400 $ 75,400
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