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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|
|Income before taxes||119,000||119,000|
|Income taxes (32% rate)||35,700||35,700|
Hint: Prepare a forecasted contribution Margin income statesment for Henna Company for products T and O, with per unit values and total values.
I believe the rows in order should be Sales, Variable Cost, Contribution Margin, Fixed costs, Income before Taxes, Income taxes(tax benefit), and Net income (loss).
|Forecasted contribution margin income statement - Henna Co. (Sales volume -26000 units)|
|Particulars||Product T||Product O|
|Per unit||Amount||Per unit||Amount|
|Income before taxes||$58,820.00||-$151,810.00|
|Income taxes (Tax benefit) (30%)||$17,646.00||-$45,543.00|
|Net Income (Loss)||$41,174.00||-$106,267.00|
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