Required Information Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 (The following information applies to the questions displayed below) 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 44,000 units of each product Sales and costs for each product follow. Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) Net income Product T $ 774,400 464,640 309,760 187,760 122, eee 39.84e Product O $ 774,400 154,880 619,520 497,520 122, see 39.840 82,960 $ 82,960 Problem 21-5A Part 3 3. Assume that the company expects sales of each product to increase to 58,000 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 32% tax rate). (Round "per unit" answers to 2 decimal places.) HENNA CO Total 5 2,041,600 Forecasted Contribution Margin Income Statement Product T Producto Units $ Per unit Total $ Per unit Total 58.000 5 17.60 $ 1.020,800 $ 17.00 $ 1.020,800 58.000 5 10.50 612.480 58.000 5 7 .04 408.320 187,700 220.500 Variable cost 812.480 Contribution margin Ficed costs 187.700 Income loss) before taxes Income taxes tax benefit) Net income (loss) $ 220,560