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Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution income statement: HINT: Round the contribution margin ratio to
Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution income statement: HINT: Round the contribution margin ratio to two decimal places for your calculations below. (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 $36,000 ? (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 up to the nearest dollar. $ (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 answers
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