Effect of taxes on break-even and target volume Machine INC desires an after-tax income of $500,000. It has fixed costs of $2,500,000, a unit sales price of $300, and unit variable costs of $150; it is in the 40% tax bracket. Required: A. What amount of the pre-tax income is needed to earn an after-tax income B. What target volume sales revenue must be reached to earn the $500,000 C. Assuming that this is a single-product firm, how many units must be sold D. What target volume sales revenue would have been needed to achieve the of $500,000? after-tax income? to earn the after-tax income of $500,000? $500,000 of income had no income tax existed