The following information applies to the questions displayed below. Vanna 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 50,000 units of each product. Sales and costs for each product follow. Sales Variable costs Product T Product O $2,000,000 $2,000,000 250,000 1,600,000 Contribution margin Fixed costs 400,000 1750,000 400,000 1,750,000 25,000 1,475,000 Income before taxes Income taxes (32% rate) 275,000 88,000 275,000 88,000 Net income $187,000 $187,000