Question
please help me solve a,b,c,d Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING
please help me solve a,b,c,d
Multiple Product Planning with Taxes
In the year 2008, Wiggins Processing Company had the following contribution income statement:
WIGGINS PROCESSING COMPANY
Contribution Income Statement
For the Year 2008
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 154,000
Selling and administrative 80,000 (234,000)
Before-tax profit 126,000
Income taxes (39%) (49,140)
After-tax profit $76,860
HINT:Round the contribution margin ratioto two decimal places for your calculations below.
(a) Determine the annual break-even point in sales dollars.
$Answer
(b) Determine the annual margin of safety in sales dollars.
$Answer
(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $72,000?
Answer
(d) With the current cost structure, including fixed costs of $234,000, what dollar sales volume is required to provide an after-tax net income of $270,000?
Do not round until your final answer. Round your answer to the nearest dollar.
$Answer
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