Problem 21-5A Part 3

0 Required information Problem 21-5A Break-even 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 58,000 units of each product Sales and costs for each product follow. Sales Variable coats Contribution nargin Pixed costs Income before taxes Income taxes (32% rate) Net income 974,400 779,520 194,880 46,880 148, 000 47 360 100,640 974,400 194,880 779,520 631,520 148,000 47,360 $100,640 Problem 21-5A Part 3 3. Assume that the company expects sales of each product to increase to 72,000 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 32% tax rate). (Round-per unit" answers to 2 decimal places.) Problem 21-5A Part 3 3. Assume that the company expects sales of each product to increase to 72,000 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 32% tax rate). (Round "per unit" answers to 2 decimal places.) HENNA Co. Forecasted Contribution Margin Income Statoment Product T Product O Total Units S Per u nit Total $ Per unit Total 72,000 72,000 72,000 cost Contribution margin xed costs Income (loss) before taxes axes (tax benefit) Net income (loss)