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Cost-Volume-Profit Relations: Missing Data

Following are data from 4 separate companies. Supply the missing data in each independent case.

	Case 1	Case 2	Case 3	Case 4
Sales revenue	$100,000	$100,000	Answer	Answer
Contribution margin	$40,000	Answer	$20,000	Answer
Fixed costs	$20,000	Answer	Answer	Answer
Net income	Answer	$5,000	$9,000	Answer
Variable cost ratio	Answer	0.50	Answer	0.20
Contribution margin ratio	Answer	Answer	0.50	Answer
Break-even point (dollars)	Answer	Answer	Answer	$25,000
Margin of safety (dollars)	Answer	Answer	Answer	$20,000

and part D PLEASE:

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
Variable costs
Cost of goods sold	$ 420,000
Selling and administrative	200,000	(620,000)
Contribution margin		580,000
Fixed Costs
Factory overheard	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) Determine the annual break-even point in sales dollars.

Round contribution margin ratio to two decimal places for your calculation. $Answer

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

Use rounded answer from above for calculation. $Answer

(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. $Answer

(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. $Answer

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