Question: Problem 18-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 [The following information applies to the questions displayed below) Henna Co.

 Problem 18-5A Break-even analysis, different cost structures, and income calculations LO

Problem 18-5A 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, 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 52,000 units of each product. Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costa Income before taxes Income taxes (358 rate) Net income Product $642,400 673,920 168,480 26, 480 242,000 49, 700 $ 92,300 Producto $842,400 168.480 673,920 531,920 142,000 49,700 $ 92,300 Problem 18-5A Part 2 2. Assume that the company expects sales of each product to decline to 35,000 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.) ananas 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)

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