Required information [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 42,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (35% rate) Product T $ 747,600 523,320 224,280 108,280 116,000 40,600 $ 75,480 Product o $ 747,600 149,520 598,080 482,080 116,000 40,600 $ 75,480 Net income 2. Assume that the company expects sales of each product to decline to 25,000 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 35% tax rate). Also, assume that any loss before taxes yields a 35% tax benefit (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.) HENNA CO. Forecasted Contribution Margin Income Statement Product T Producto Total Units $ Per unit Total $ Per unit Total Sales 25,000 $ 30.00 $ 750,000 $ 30.00 $ 750,000 $ 1,500,000 Variable cost 25,000 $ 21.00 525,000 $ 6.00 150,000 675,000 Contribution margin 25,000 $ 9.00 225,000 $ 24.00 600,000 825,000 Fixed costs 0 Income (Loss) before taxes 225,000 225,000 income taxes (tax benefit) Net income (loss) 3. Assume that the company expects sales of each product to increase to 56,000 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 35% tax rate). (Round "per unit" answers to 2 decimal places.) HENNA CO. Forecasted Contribution Margin Income Statement Product T Producto Total Units $ Per unit Total $ Per unit Total S 0 $ 0 $ 0 0 0 0 Contribution margin 0 Net income (loss) $ 0