Required information [The following information applies to the questions displayed below.) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT. a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope, 1. Estimate Product XT's break-even point in terms of sales units and sales dollars. (1 unit = 100 yards) (Do not round intermediate calculations.) Contribution Margin per 100 yds. S 0 Contribution margin Contribution Margin ratio Choose Numerator: 1 Choose Denominator: 1 Contribution Margin Ratio Contribution margin ratio 0 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Contribution Margin per 100 yds. $ 0 Contribution margin Contribution Margin ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio 0 1(a) Estimate Product XT's break-even point in terms of sales units. (1 unit = 100 yards) Choose Numerator: 1 Choose Denominator: Break-Even Units / Break-even units 0 = 1(b) Estimate Product XT's break-even point in terms of sales dollars. Choose Numerator: 1 Choose Denominator: / Break-Even Dollars Break-even dollars 11 [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 48,000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32rate) Net income Product 1 $825,600 577,920 247,680 113,680 134,000 42,880 $ 91,120 Producto $825,600 165, 120 660, 480 526, 480 134,000 42,880 $ 91,120 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Product Contribution Margin Ratio Choose Numerator: 1 Choose Denominator. Contribution Margin Ratio Contribution margin ratio 0 D Bm Product T Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: 1 Contribution Margin Ratio Contribution margin ratio 0 Break-Even Point in Dollars Choose Numerator: 1 Choose Denominator: = Break-Even Point in Dollars Break-even point in dollars 11 0 Producto Contribution Margin Ratio 11 Contribution margin ratio 0 Break-Even Point in Dollars 11 Break-even point in dollars 0 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 48,000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (328 rate) Net income Product T $825,600 572,920 247,680 113,680 134,000 42,880 $ 91,120 Product o $825,600 165, 120 660, 480 526,480 134,000 42,880 $ 91,120 2. Assume that the company expects sales of each product to decline to 31,000 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 32% tax rate). Also, assume that any loss before taxes yields a 32% tax benefit (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.) 2. Assume that the company expects sales of each product to decline to 31,000 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 32% tox rate). Also, assume that any loss before taxes yields a 32% 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 Units $ Per unit Total Per unit Total $ Total 0 $ 0 0 0 0 Contribution margin 0 0 0 Net Income (los)