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E 15-19. Multiple Product Planning with Taxes (LO3, 4) In the year 2013, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING COMPANY
E 15-19. Multiple Product Planning with Taxes (LO3, 4) In the year 2013, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING COMPANY Contribution Income Statement For the year 2013Sales $1,200,00 Variable costs Cost of goods sold $420,000 Selling and administrative $200,000 (620,000) Contribution margin 580,000 Fixed costs Manufacturing overhead 205,000 Selling and administrative 80,000 (285,000) Before-tax profit 295,000 Income taxes (36%) (106,200) After-tax profit $ 188,800 Required a. Determine the annual break-even point in sales dollars. h. Determine the annual margin of safety in sales dollars. C. What is the break-even point in sales dollars if managements makes a decision that increases fixed costs by $57,000? d. With the current cost structure. including fixed costs of $285.000. shat dollar sales volume is required to provide an after-tax net income of $200,000? Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income
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