16-2-pt 2

V Check My Work 3. See Cornerstone 16.4 . Use a contribution margin format income statement. X units Variable selling expense is $14 per unit; fixed selling and administrative expense totals $290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of $300,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. If required, round your answer to the nearest whole unit. x units Feedback Check My Work 1. After-tax Profit/(1-Tax Rate) = Before-Tax Profit. 2. The required number of units = (Fixed Costs + Target Profit )/ Contribution Margin per Unit