Question
In the year 2008, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING COMPANY Contribution Income Statement For the Year 2008 Sales $1,000,000
In the year 2008, Wiggins Processing Company had the following contribution income statement:
WIGGINS PROCESSING COMPANY Contribution Income Statement For the Year 2008
Sales $1,000,000
Variable costs
Cost of goods sold $420,000
Selling and administrative $200,000 (620,000)
Contribution margin $380,000
Fixed Costs Factory overhead $186,000
Selling and administrative $80,000 (266,000)
Before-tax profit $114,000
Income taxes (37%) (42,180)
After-tax profit $71,820
(d) With the current cost structure, including fixed costs of $266,000, what dollar sales volume is required to provide an after-tax net income of $250,000?
Do not round until your final answer. Round your answer to the nearest dollar.
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