Required information [The following information applies to the questions displayed below.] Hanna 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 56.000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before tikes Income taxes (355 rate) Net income Product T $929,600 650, 720 278,830 232,880 246.000 51,100 Producto $929,600 185,920 743,680 547,620 146,000 51,200 $ 44,900 $44,900 Required: 1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.) Required: 1. Compute the break-even point in dollar sales for each product (Enter CM ratio as percentage rounded to 2 decimal places.) Answer is complete and correct. Product I Contribution Margin Ratio Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio Contribution margin Sales Contribution margin ratio $ 278.8805 929.000 30.00% Break Even Point in Dollars Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars Contribution margin Total fed costs - ratio Break-even point in dollars 132.880 30.00% - $ 442.933 Producto Contribution Margin Ratio Contribution margin Sales Contribution margin ratio $ 743,680 929.000 80.00% Break-Even Point in Dollars Contribution margin Totaled costs ratio Break-even point in dollars 397,080 80.00% $ 747.100 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 56.000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before tants Income taxes (355 rate) Net income Product T $929,600 650,720 278,880 232,880 246,000 51.100 $ 44,900 Producto $929,600 185,920 743,600 547,680 00 51100 $44,900 2 Assume that the company expects sales of each product to decline to 39.000 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.) 2 Assume that the company expects sales of each product to decline to 39.000 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.) Total HENNA CO. Forecasted Contribution Marin Income Statement Product T Producto Units $ Per unit Total $ Per unit Total 30,000 $ 39,000 0 39.000 Sales Variable cost Contribution margin 0 $ 0 0 0 0 0 Net income (10 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 56,000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (35S ratt) Net income Product $929,600 650,720 278,830 232,810 246,000 54,100 $ 44,900 Producto $92,400 185,420 743,690 597,410 246,000 51.100 $ 44,400 3. Assume that the company expects sales of each product to increase to 70.000 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.) 3. Assume that the company expects sales of each product to Increase to 70.000 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 Units $ Per unit Total $ Per unit Total Total Contribution margin Net income (loss)
