Required information 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 40,000 units of each product. Sales and costs for each product follow. Product T $720,000 Product O Sales Variable costs Contribution margin Fixed costs $720,000 576,000 144,000 144,000 576,000 34,000 466,000 Income before taxes. Income taxes (32% rate) Net income 110,000 35,200 110,000 35,200 $ 74,800 $ 74,800 Problem 18-5A Part 3 3. Assume that the company expects sales of each product to increase to 54,000 units next year with no change in unit selling price.