Multiple product planning with taxes

Assignment Help Financial Accounting

Reference no: EM13966187

Multiple Product Planning with Taxes

In the year 2013, Wiggins Processing Company had the following contribution income statement:

WIGGINS PROCESSING COMPANY

Contribution Income Statement

For the Year 2013

Sales		$ 1,200,000
Less: Variable costs
Cost of goods sold	$ 420,000
Selling and administrative	200,000	620,000
Contribution margin		580,000
Less: Fixed costs
Manufacturing overhead	205,000
Selling and administrative	80,000	285,000
Before-tax profit		295,000
Income taxes (36%)		106,200
After-tax profit		$ 188,800

a. 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?

b. Prepare an abbreviated contribution income statement to verify that the solution to requirement (a) will provide the desired after-tax income.

Reference no: EM13966187

Questions Cloud

Lakeview company completed : Lakeview Company completed calculated the payroll, which indicates gross earnings for wages

Identify statement that characterizes an industrial union : Identify the statement that characterizes an industrial union.

What is its angular velocity in radians/sec : What is the frequency of the merry-go-round in cycles/sec? What is the linear velocity in feet/sec of a point on the rim of the merry-go-round?

How does the manager formulate goals and implementation : How does the manager formulate goals and implementation? Where is headed for the future and how does it mean to get there?

Multiple product planning with taxes : Multiple Product Planning with Taxes Wiggins Processing Company had the contribution income statement

Web programming by using php. : Web programming by using php.. The website generates the random number from 1 to 100 when accessing the first page. And the user will guess the number.i) The first page contains a text box for accepting a number from the user, and a submit button.

How long ago did the living thing die : It is difficult to measure any residual radioactivity if N(t) drops below No/1000. But if this is the case, we can at least say that the living thing must have died at t years ago or more. Solve for t in the inequality: N(t) > No/1000.

The circuit and creating a boolean expression : Which is creating a truth table for the circuit and creating a Boolean expression.

Perhaps your most important post graduation objective : Perhaps your most important post-graduation objective is to get a job. Describe some control activities that you would pursue to help achieve this objective.

User Account

All Pages