d) With the current cost structure, including fixed costs of $266,000, what dollar sales volume is required to provide an after-tax net income of $250,000? Do not round until your final answer. Round your answer up to the nearest dollar. e) Prepare an abbreviated contribution income statement to verify that the solution to part (d) will provide the desired after-tax income. tound 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 Income Statement For the Year 2008 $ Sales Variable costs Contribution margin Fixed costs Net income before taxes Income taxes (3796) Net income after taxes $ Check
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- Multiple Product Planning with TaxesIn the year 2017, Pyramid Consulting had the following contribution income statement: PYRAMID CONSULTINGContribution Income StatementFor the Year 2017 Sales revenue $ 1,300,000 Variable costs Cost of services $ 420,000 Selling and administrative 200,000 (620,000) Contribution margin 680,000 Fixed Costs -selling and administrative (285,000) Before-tax profit 395,000 Income taxes (36%) (142,200) After-tax profit $ 252,800 a) Determine the annual break-even point in sales revenue. Round contribution margin ratio to two decimal places for your calculation. Round final answer to nearest dollar. (b) Determine the annual margin of safety in sales revenue. Use rounded answer from above for calculation. (c) What is the break-even point in sales revenue if management makes a decision that increases fixed costs by $57,000? Use rounded contribution margin ratio (2 decimal places) for your calculation. (d) With the…Multiple Product Planning with TaxesIn the year 2017, Pyramid Consulting had the following contribution income statement: PYRAMID CONSULTINGContribution Income StatementFor the Year 2017 Sales revenue $ 1,300,000 Variable costs Cost of services $ 420,000 Selling and administrative 200,000 (620,000) Contribution margin 680,000 Fixed Costs -selling and administrative (285,000) Before-tax profit 395,000 Income taxes (36%) (142,200) After-tax profit $ 252,800 With the current cost structure, including fixed costs of $285,000, what dollar sales revenue 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. check_circleThe GAAP income statement for Wildhorse Company for the year ended December 31, 2022, shows sales $950,000, cost of goods sold $595,000, and operating expenses $165,000. Assuming all costs and expenses are 80% variable and 20% fixed, prepare a CVP income statement through contribution margin. Sales Variable Expenses Contribution Margin Fixed Expenses Net Income /(Loss) LA PACE COMPANY CVP Income Statement tA LA 950000
- The following information is available for Concord Corporation: Total fixed $150000 expenses == Total variable. 320000 expenses Sales Cost of goods sold $570000 370000 A CVP income statement would report O gross profit of $250000, contribution margin of $420000. Ogross profit of $200000. O contribution margin of $250000.4) Wayne Manufacturing Company had the following information for the 2021. Selling price Direct materials cost per unit Indirect materials cost per unit Direct manufacturing labor per unit Indirect manufacturing labor cost per unit Salespersons' company vehicle costs per unit Annual property taxes on manufacturing plant building Annual Depreciation of manufacturing equipment Annual Depreciation of office equipment Miscellaneous plant overhead per unit Plant utilities per unit General office expenses per unit Annual Marketing costs Tax rate Calculate the following: a- Contribution margin per unit $30 4 3.20 4.8 2 1.65 28,000 264,000 118,000 1.35 .92 1.08 e- f- 30,000 30% b- Contribution margin percentage C- How many units does Wayne Company have to sell to break even? d- How many units does Wayne Company have to sell to make operating income of $55,000? How many units does Wayne Company have to sell to make operating income of $46,200? Calculate the operating leverage when expected sale…Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?
- Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 300,000 $ Sales Beginning merchandise inventory 20,000 $ 200,000 $ $ $ Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 7,000 ? 12,000 $ 15,000 $ 60,000 $ 18,000 Required: 1. Prepare a contribution format income statement.Salespersons report and analysis Pachec Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended June 30 are as follows: Instructions 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. 2. Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.Compute the Productivity Component indicate if favorable/(unfavorable). PROBLEM: Financial Perspective Gloria Corporation presents the following information for year 2020 & 2021 2020 2021 Sales P 45, 000 P 38, 000 Production Expenses Direct materials 12,000 9, 504 Direct labor 10,000 8, 976 Factory overhead Gross Profit 5, 000 5, 000 P 18, 000 P 14, 520 Operating Expenses Operating income 13,000 13, 000 P5, 000 P1, 520 During the year 2020, the corporation was able to sell 10, 000 units which is 25% above the sales in 2021. The same capacity was used for factory overhead and operating expenses for years 2020 and 2021. Other data are as follows: 2020 2021 Raw materials used ( kg) 1, 200 720 Direct labor hours 1, 000 816
- A U Ltd manufactures and sells a single product, the company's sales and expenses for themonth of January 2021 were as follows:Total (Kshs)Value per unit (Kshs)Sales1.200.0080.00Less: Variable expenses840.0056.00Contribution360.0024.00Less: Fixed expenses300.00Net income60.00Required:What is the monthly breakeven point in units and in shillings?What is the total contribution margin at breakeven point?How many units would be sold each month to carn a minimum target net income ofkshs. 36.000?(iv)Using the original data, compute a company's margin of safety in both shilling and in percentage termsWhat is the contribution margin ratio, if the monthly sales increase by Kshs 16,000?The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:he HASF Ink Ltd income statement for the preceding year is presented below except as noted the cost / revenue relationship for the coming year is expected to follow the same pattern as in the preceding year income statement for the year ending March 31 is as follow s Sales (200,000 units @ 2.5 Each) Rs. 5, 00,000 Variable cost 3, 00,000 Contribution margin 2, 00,000 Less Fixed cost 100,000 Profit before tax 100,000 Less tax 35,000 Profit after tax 65,000 Required The company management feels that it should earn at least Rs.10, 000 pre taxes per annum on the new investment what sales volume is required to enable the company to maintain existing profit.