3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar. Olivian Company Income Statement For the Coming Year Sales Total variable expense Total $ 3,538,500 x 2,361,800 X Total contribution margin Total fixed expense 1,510,000 X 710,000 X Operating income 800,000 X Less: Income taxes 320,000 X Net income 480,000 X Feedback Check My Work 3. Use a contribution margin format income statement. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a $480,000 target net income be higher or lower than the units calculated in Requirement 2? Lower Calculate the number of units needed at the new tax rate. In your calculations, round before-tax income to the nearest dollar. Round your answer to the nearest whole unit. 12,382 X units After-Tax Profit Targets Olivian Company wants to earn $480,000 in net (after-tax) income next year. Its product is priced at $300 per unit. Product costs include: Direct materials Direct labor Variable overhead Total fixed factory overhead $90.00 $66.00 $15.00 $450,000 Variable selling expense is $12 per unit; fixed selling and administrative expense totals $300,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of $480,000. 800,000 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. 10,110 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. 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar.