(a) Determine the annual break-even point in sales dollars. (b) Determine the annual margin of safety in sales dollars. (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $57,000? (d) With the current cost structure, including fixed costs of $285,000, what dollar sales volume is required to provide an after-tax net income of $200,000? (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. Round your answers to the nearest dollar.

WIGGINS PROCESSING COMPANY Income Statement For the Year 2013
Sales
Variable costs
Contribution margin
Fixed costs
Net income before taxes
Income taxes (36%)
Net income after taxes

In the year 2013, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING COMPANY Contribution Income Statement For the Year 2013 $ 1,200,000 Sales Variable costs $ 420,000 200,000 (620,000) 580,000 Cost of goods sold Selling and administrative Contribution margin Fixed Costs Factory overheard Selling and administrative Before-tax profit Income taxes (36%) After-tax profit 205,000 80,000 (285,000) 295,000 (106,200) $ 188,800