Required

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

costs by $57,000?

d. With the current cost structure, including fixed costs of $285,000, what dollar sales revenue is re-

quired 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.

Multiple Product Planning with Taxes In the year 2017, Pyramid Consulting had the following contribution income statement: PYRAMID CONSULTING Contribution Income Statement For the Year 2017 Sales revenue.__ _ _ . . . _ _ . . . . _ _ _ . . . _ _ _ . . . _ _ _ _ . . . _ _ . . . . _ _ . . Variable costs $1,300,000 $420,000 200,000 (620,000) 680,000 (285,000) 395,000 (142,200) Selling and administrative Fixed costs-selling and administrative Before-tax profit Income taxes (36%) $252,800