Solution-Determine the annual break-even point in sales

Determine the annual break-even point in sales dollars

Assignment Help Financial Accounting

Reference no: EM132468816

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		$1,000,000
Cost of goods sold	$460,000
Selling and administrative	200,000	(660,000)
Contribution margin		340,000
Fixed Costs
Factory overhead	192,000
Selling and administrative	80,000	(272,000)
Before-tax profit		68,000
Income taxes (38%)		(25,840)
After-tax profit		$42,160

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

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

Question (c) What is the break-even point in sales dollars if management makes a decision that increases fixed costs by $34,000?

Question (d) With the current cost structure, including fixed costs of $272,000, what dollar sales volume is required to provide an after-tax net income of $160,000?

Reference no: EM132468816

Questions Cloud

Accuracy present an ethical problem : Which one is inherently more accurate, and does accuracy present an ethical problem when it is -- accurate?

Identify children who require additional support to achieve : Assessment may identify children who require additional support to achieve learning outcomes. List the three points to consider when gaps in children knowledge

Develop a value proposition statement : Imagine you have inherited a company. Choose a product that the company manufactures and sells. Assume that traditionally, the company

Are there other segments that might be more lucrative : Outline the marketing research steps that you would take to better understand the problem and the opportunities?

Determine the annual break-even point in sales dollars : With the current cost structure, including fixed costs of $272,000, what dollar sales volume is required to provide an after-tax net income of $160,000?

Write a paragraph explaining the reasoning of hypothesis : Assert a hypothesis. Write a paragraph explaining the reasoning of that hypothesis. How might you measure the IV? How might you measure the DV?

Importance of a child developing responsibility : Research on the Internet and gathering materials. You read over the assignment sheet and notice that your child is not including all of the required items

How to more effectively interact with the patients : In this scenario, you are administrators at a hospital that has seen an increase in the number of patients coming in for treatment that requires specific health

Examine an adverse selection problem for the company : For the company, you selected examine an adverse selection problem and recommend how it should minimize its negative impact on transactions.

User Account

All Pages

Determine the annual break-even point in sales dollars

Reference no: EM132468816

Reference no: EM132468816

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT