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PYRAMID CONSULTING Contribution Income Statement For the Year 2017 Sales revenue 1,300,000 Variable costs Cost of services 420,000 Selling and administrative Contribution margin Fixed Costs-selling

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PYRAMID CONSULTING Contribution Income Statement For the Year 2017 Sales revenue 1,300,000 Variable costs Cost of services 420,000 Selling and administrative Contribution margin Fixed Costs-selling and administrative Before-tax profit Income taxes (36%) After-tax profit 200,000 (620,000) 580,000 (285,000) 395,000 (142,200) $ 252,800 (a) Determine the annual break-even point in sales revenue. Round contribution margin ratio to two decimal places for your calculation. Round final answer to nearest dollar. $544,853x (a) Determine the annual break-even point in sales revenue Round contribution margin ratio to two decimal places for your calculation. Round final answer to nearest dollar 544,853X (b) Determine the annual margin of safety in sales revenue. Use rounded answer from above for calculation. 755,147x c) What is the break-even point in sales revenue if management makes a decision that increases fixed costs by $57,000? Use rounded contribution margin ratio (2 decimal places) for your calculation 653,795 x (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? Use rounded contribution margin (2 decimal places) for calculation. Round your answer to the nearest dollar 1,145,791x (e) Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income Use rounded contribution margin (2 decimal places) for variable cost/contribution margin computations Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers PYRAMID CONSULTING Income Statement For the Year 2017 Sales ,142,229x Variable costs 544,729 x 97,500 285,000 1200 112,500 200,000 Contribution margin Fixed costs Net income before taxes Income taxes (36%)

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