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In the year 2013, Wiggins Processing Company had the following contribution income statement: In the year 2013, Wiggins Processing Company had the following contribution income
In the year 2013, Wiggins Processing Company had the following contribution income statement:
In the year 2013, Wiggins Processing Company had the following contribution income statement: (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $57,000 ? Use rounded contribution margin ratio (2 decimal places) for your calculation. (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 ? Use rounded contribution margin (2 decimal places) for calculation. Round your answer up to the nearest dollar. s (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answersStep by Step Solution
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