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

Sales		$1,200,000
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

(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 requirement (d) will provide the desired after-tax income.