Information for Melong Industries is provided below.
Average selling price per unit..................... $ 10.00
Average variable costs per unit:
Cost per unit ........................................ 5.00
Selling costs ......................................... 1.40
Annual fixed costs:
Selling...............................................240 000
Administration ....................................380 000
After-tax profit target...........................126 000
Tax rate ............................................ 30%

Required
a. Calculate the before-tax profit.
b. Calculate the number of units that need to be sold in 2012 to reach the after-tax profit target.
c. If the sales units in 2012 should be 25 per cent less than required to meet the after-tax profit target, what will the after-tax profit actually be?