In the year 2013, Wiggins processing Company had the following contriution 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 Credit		$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 the fixes costs by $57,000.

D - With the currect cost structure, including fixes 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.