03 Feb Week 5 Graded HomeworkIn the year 2013, Wiggins Pr
Week 5 Graded HomeworkIn the year 2013, Wiggins Processing Company had the following contribution income statement:Sales$ 1,200,000Variable costsCost of goods sold$ 420,000Selling and administrative200,000(620,000)Contribution margin580,000Fixed CostsFactory overheard205,000Selling and administrative80,000(285,000)Before-tax profit295,000Income taxes (36%)(106,200)After-tax profit$ 188,800(a) Determine the annual break-even point in sales dollars.Round contribution margin ratio to two decimal places for your calculation. $AnswerIncorrect0.00 points out of 1.00 (b) Determine the annual margin of safety in sales dollars.Use rounded answer from above for calculation. $AnswerIncorrect0.00 points out of 1.00 (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $57,000?Use rounded contribution margin ratio (2 decimal places) for your calculation.$AnswerIncorrect0.00 points out of 1.00 (d) With the current cost structure, including fixed costs of $285,000, what dollar sales volume 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. $AnswerIncorrect0.00 points out of 1.00 (e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income.Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.Sales$Answer Incorrect0.00 points out of 1.00 Variable costs (52% of sales)Answer Incorrect0.00 points out of 1.00 Contribution marginAnswer Correct1.00 points out of 1.00Fixed costsAnswer Correct1.00 points out of 1.00Net income before taxesAnswer Correct1.00 points out of 1.00Income taxes (36%)Answer Correct1.00 points out of 1.00Net income after taxes$Answer
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