Business, 20.02.2020 05:50 pog2923

Assume that the company expects sales of each product to decline to 25,000 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 savings. (Round "per unit" answers to 2 decimal places. Enter losses and tax benefits, if any, as negative values.)

HENNA CO. Forecasted Contribution Margin Income Statement

Product T Product O Total
Units $ Per unit Total $ Per unit Total
Sales 25,000 $17.80 $445,000 $17.80 $445,000 $890,000
Variable cost 25,000 $12.46 311,500 $5.98 149,500 461,000
Contribution margin 25,000 $5.34 133,500 $5.98 149,500 283,000
Fixed costs 0
Income before taxes 133,500 133,500
Income taxes (tax benefit)
Net income (loss)
3. Assume that the company expects sales of each product to increase to 56,000 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 35% tax rate). (Round "per unit" answers to 2 decimal places.) Forcasted Contribution Margin Income Statement (layed out like one abouve but I couldnt get them both to paste)

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:00, esnyderquintero

Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.

Answers: 1

continue

Business, 22.06.2019 11:00, mmcdaniels46867

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld

Answers: 2

continue

Business, 22.06.2019 21:30, girlhooper4life11

Suppose that alexi and tony can sell all their street tacos for $2 each and all their cuban sandwiches for $7.25 each. if each of them worked 20 hours per week, how should they split their time between the production of street tacos and cuban sandwiches? what is their maximum joint revenue?

Answers: 3

continue

Business, 22.06.2019 22:00, isabellainksow87vn

Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (t) and variable quantities of cement (c) and labor (l). the firm is currently paving 1,000 parking spaces. the firm's cost of cement is $3 comma 600.003,600.00 per acre covered (c) and its cost of labor is $35.0035.00/hour (w). for the quantities of c and l that the firm has chosen, mp subscript upper c baseline equals 60mpc=60 and mp subscript upper l baseline equals 7mpl=7. is this firm minimizing its cost of producing parking spaces?

Answers: 3

continue

You know the right answer?

Assume that the company expects sales of each product to decline to 25,000 units next year with no c...