The following information on the most recent years for Vinnie's Cream Pie Fillings is available: Baking capacity Tonnage sold in year 3.000 tonnes of filling 1,800 Sales Variable costs Contribution margirn Fixed costs $900,000 495,000 $405,000 90,000 112,500 45,000 $157,500 63,000 S 94 500 Manufacturing Selling Administration Income before taxes Income taxes @ 40% Net income Instructions a. Calculate the break-even volume in tonnes for the year b. If Vinnie expects to sell 2,100 tonnes of filling next year, calculate the expected after tax income, assuming costs and prices remain the same. Confirm your answer by preparing a CVP income statement. Vinnie's cousin says he can sell pie filling to a new company in a nearby city but will require Vinnie to pay $61,500 to advertise the product. In addition, Vinnie will have to pay his cousin $25 for each tonne sold. Calculate the number of tonnes that will have to be sold to maintain the current after tax net income. Vinnie wants to ramp up production by investing in a new machine that will cost $58,500. The benefit will be that variable costs will decrease by $25 per tonne. Calculate the new break-even if the new machine is purchased. Assume instead that Vinnie does not purchase the machine or begin selling in the new city. He is worried that per-tonne selling prices will decline by 10% and variable costs will increase by $40 per tonne. Calculate the sales volume in dollars needed if Vinnie is to maintain his after tax income of $94,500. c. d. e