Question: please help me solve a,b,c,d Multiple Product Planning with Taxes In the year 2008, Wiggins Processing Company had the following contribution income statement: WIGGINS PROCESSING

please help me solve a,b,c,d

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 $1,000,000

Variable costs

Cost of goods sold. $440,000

Selling and administrative 200,000 (640,000)

Contribution margin 360,000

Fixed Costs

Factory overhead 154,000

Selling and administrative 80,000 (234,000)

Before-tax profit 126,000

Income taxes (39%) (49,140)

After-tax profit $76,860

HINT:Round the contribution margin ratioto two decimal places for your calculations below.

(a) Determine the annual break-even point in sales dollars.

$Answer

(b) Determine the annual margin of safety in sales dollars.

$Answer

(c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $72,000?

Answer

(d) With the current cost structure, including fixed costs of $234,000, what dollar sales volume is required to provide an after-tax net income of $270,000?

Do not round until your final answer. Round your answer to the nearest dollar.

$Answer

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