[The following information applies to the questions displayed below.] Henna Co. produces and sells two...
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[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 43,000 units of each product. Sales and costs for each product follow.
Product T
Product O
Sales
$
761,100
$
761,100
Variable costs
608,880
76,110
Contribution margin
152,220
684,990
Fixed costs
33,220
565,990
Income before taxes
119,000
119,000
Income taxes (32% rate)
35,700
35,700
Net income
$
83,300
$
83,300
Assume that the company expects sales of each product to increase to 57,000 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 30% tax rate). (Round "per unit" answers to 2 decimal places.)
Hint: Prepare a Forcasted contribution margin income statement for Products T and O using per unit and total values.
I believe the rows in order should be sales, variable cost, contriubtion margin, fixed costs, income(loss) before taxes, income taxes(tax benefit), net income(loss)
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