Pyramid Consulting
Contribution Income Statement
For the Year 2017
Sales Revenue		$1,300,000.00
Varible costs
Cost of service	420,000
Selling and adminstratrive	200,000	($620,000.00)
Constibution Margin		$680,000.00
Fixed cost-selling and adminstrative		-$285,000.00
Before -tax profit		$395,000.00
Income taxes (36%)		-$142,200.00
After-tax profit		$252,800.00
a.) Determine the annual break-even point in sales revenue
b.) Determine the annual margin of safety in sales revenue
c.) What is the break-even point in sales revenue if management makes a decision that increases fixed cost of $5000.00
d.) With the current cost structure, including fixed costs of $285,000, what dollar sales revenue 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.