After$-$Tax Profit Targets

Olivian Company wants to earn $$300,000$ in net $($after$-$tax$)$ income next year. Its product is priced at $$350$ per unit. Product costs include:

Variable selling expense is $$14$ per unit; fixed selling and administrative expense totals $$255,000.$ Olivian has a tax rate $40$ percent.

Required:

Calculate the before$-$tax profit needed to achieve an after$-$tax target of $$300,000.$

$

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.

unitsAfter$-$Tax Profit Targets

Olivian Company wants to earn $$300,000$ in net $($after$-$tax$)$ income next year. Its product is priced at $$350$ per unit. Product costs include:

Variable selling expense is $$14$ per unit; fixed selling and administrative expense totals $$255,000.$ Olivian has a tax rate $40$ percent.

Required:

Calculate the before$-$tax profit needed to achieve an after$-$tax target of $$300,000.$

$

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.

units