E3-19 Multiple Product Panning with Taxes

In the year 2013, Wiggings Processing Company had the following contribution income statement:

E3-19. Multiple Product Planning with Taxes In the year 2013, Wiggins Processing Company had the following contribution income statement LO3, 4 $1,200,00i0 Variable costs 200,000(620, 000) 580,000 Fixed costs (285,000) 295,000 (106,200) $ 188,800 80,000 Income taxes (36%). Required 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? 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? Prepare an abbreviated contribution income statement to verify that the solution to require- ment (d) will provide the desired after-tax income. d. e