Err After-Tax Profit Targets Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its product is priced at $275 per unit. Product costs includes Direct materials $90 Direct labor $65 Variable overhead Total fixed factory overhead $440,000 Variable selling expense is 514 per unit; fixed selling and administrative expense totals $290,000. Olivian has a tax rate of 40 percent $16 Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of $420,000 700,000 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. 15,889 units Enedback 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Olivian Company Income Statement For the Coming Year Total Sales 4.369,475 Total variable expense 2.939.465 Total contribution margin 1.430.010 eBook Olivian Company Income Statement For the Coming Year Total Sales 4,369,475 Total variable expense 2,939,465 Total contribution margin 1,430,010 Total fixed expense 730,000 Operating income $ 700,010 Less: Income taxes 280,004 Net income 420,006 Feedback 4. What if Olivian had a 35 percent tax rate? Would the units sold to rea Lower Calculate the number of units needed at the new tax rate. In your calcu nearest whole unit. 15.3 x units