CVP: Before$-$ and After$-$Tax Targeted Income

Helmet$-$Pro Company produces helmets for bicycle racing. Currently, Helmet$-$Pro charges a price of $$230$ per helmet. Variable

costs are $$92\mathrm{.}00$ per helmet, and fixed costs are $$1,164,000.$ The tax rate is $25$ percent. Last year, $14,000$ helmets were sold.

Required:

What is Helmet$-$Pro's net income for last year?

$

What is Helmet$-$Pro's break$-$even revenue? In your computations, round the contribution margin ratio to two decimal

places.

$

$x$

Suppose Helmet$-$Pro wants to earn before$-$tax operating income of $$837,000.$ How many units must be sold? Round to the

nearest whole unit.

$$ units

Suppose Helmet$-$Pro wants to earn after$-$tax net income of $$586,350.$ How many units must be sold? In your computations,

round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit.

$$ units

Suppose the income tax rate rises to $35$ percent. How many units must be sold for Helmet$-$Pro to earn after$-$tax income of

$$597,870?$ Round to the nearest whole unit.

$x$ units