Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution...

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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 Variable costs Cost of goods sold Selling and administrative $1,000,000 $440,000 200,000 (640,000) 360,000 Contribution margin Fixed Costs Factory overhead 190,000 Selling and administrative 80,000 (270,000) Before-tax profit 90,000 Income taxes (39%) (35,100) $54,900 After-tax profit HINT: Round the contribution margin ratio to two decimal places for your calculations below. (a) Determine the annual break-even point in sales dollars. $ 750,000 (b) Determine the annual margin of safety in sales dollars. $ 250,000 (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $36,000? 850,000 (d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000? Do not round until your final answer. Round your answer up to the nearest dollar. $ 688,524 (d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000? Do not round until your final answer. Round your answer up to the nearest dollar. $ 688,524 (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers. WIGGINS PROCESSING COMPANY Sales Income Statement For the Year 2008 $ 1,680,000 Variable costs 0 Contribution margin 515,900 Fixed costs 270,000 Net income before taxes 245,900 Income taxes (39%) 95,900 Net income after taxes $ 150,000 Check 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 Variable costs Cost of goods sold Selling and administrative $1,000,000 $440,000 200,000 (640,000) 360,000 Contribution margin Fixed Costs Factory overhead 190,000 Selling and administrative 80,000 (270,000) Before-tax profit 90,000 Income taxes (39%) (35,100) $54,900 After-tax profit HINT: Round the contribution margin ratio to two decimal places for your calculations below. (a) Determine the annual break-even point in sales dollars. $ 750,000 (b) Determine the annual margin of safety in sales dollars. $ 250,000 (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $36,000? 850,000 (d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000? Do not round until your final answer. Round your answer up to the nearest dollar. $ 688,524 (d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000? Do not round until your final answer. Round your answer up to the nearest dollar. $ 688,524 (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers. WIGGINS PROCESSING COMPANY Sales Income Statement For the Year 2008 $ 1,680,000 Variable costs 0 Contribution margin 515,900 Fixed costs 270,000 Net income before taxes 245,900 Income taxes (39%) 95,900 Net income after taxes $ 150,000 Check