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 $800,000 800,000 100,000 560,000 Contribution margin Fixed costs 240,000 700,000 560,000 100,000 Income before taxes Income taxes (32% rate) 140,000 44,800 140,000 44,800 Net income $ 95,200 $95,200