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Determine the annual break-even point in sales dollars. Round contribution margin ratio to two decimal places for your calculation.
(b) Determine the annual margin of safety in sales dollars. Use rounded answer from above for calculation.
(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.
(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.
(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.
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