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In the year 2008, Wiggins Processing Company had the following contribution income statement: Sales $1,000,000 Variable costs Cost of goods sold $440,000 Selling and administrative
In the year 2008, Wiggins Processing Company had the following contribution income statement:
Sales $1,000,000 Variable costs Cost of goods sold $440,000 Selling and administrative 200,000 (640,000) Contribution margin 360,000 Fixed Costs Factory overhead 190,000 Selling and administrative 80,000 (270,000) Before-tax profit 90,000 Income taxes (39%) (35,100) After-tax profit$54,900
(d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000?
Do not round until your final answer. Round your answer to the nearest dollar.
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