Effect of taxes on break-even and target volume}

Stuart Products Inc. desires to earn an after-tax income of \(\$ 250,000\). It has fixed costs of \(\$ 1,000,000\), a unit sales price of \(\$ 500\), and unit variable costs of \(\$ 200\). The company is in the \(30 \%\) tax bracket.

1. How many dollars of sales revenue must be earned to achieve the after-tax profit of \(\$ 250,000\) ?

2. How many dollars of revenue would have to be earned to achieve the \(\$ 250,000\) of profit if there were no income tax?