Problem 05-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4

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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 55,000 units of each product. Sales and costs for each product follow.

1. Compute the break-even point in dollar sales for each product. (Enter CM ratio as percentage rounded to 2 decimal places.)

2. Assume that the company expects sales of each product to decline to 38,000 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 30% tax rate). Also, assume that any loss before taxes yields a 30% tax benefit. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.)

3. Assume that the company expects sales of each product to increase to 69,000 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.)

1, 2, & 3 are all part of ONE question. Please answer ALL parts, PLEASE.

Problem 05-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following information applies to the questions displayed below) Henna Co produces and sells two products, Tando. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 55,000 units of each product. Sales and costs for each product follow Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (30% rate) Net income Product T $907,500 726,000 181,500 36,500 145,000 43,500 $101,500 Producto $907,500 90,750 816,750 671,750 145,000 43,500 $101,500 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 (loss) HENNA CO. Forecasted Contribution Margin Income Statement Product T Producto Units $ Per unit Total Per unit Total Total $ 0 $ 0 $ 0 0 0 0 Contribution margin 0 0 Net income (loss) $ 0