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DONT RESPOND THE SAME THING I HAVE. RESPOND CORRECTLY TO RECEIVE THUMBS UP FOR NUMBER 2 ITS NOT $400,000 NEITHER $600,000 wants to earn $600,000

DONT RESPOND THE SAME THING I HAVE. RESPOND CORRECTLY TO RECEIVE THUMBS UP

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FOR NUMBER 2 ITS NOT $400,000 NEITHER $600,000

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wants to earn $600,000 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 $280,000. Olivian has a tax rate of 40 percent. 1. Calculate the before-tax profit needed to achieve an after-tax target of $600,000. 2. Calculate the nuphher af units that will vield onerating income calculated in Requirement 1 above. If required, round your answer to the nearest whole unit. X un Income Statement For the Coming Year Sales Total variable expense Total contribution margin Total fixed expense Operating income Less: Income taxes Net income 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a $600,000 target net income be higher or lower than the units calculated in Requirement 2 ? 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. units

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