Example: Kalman Company has the following information:

Price	$12
Unit variable cost	$3
Total fixed cost	$31,500
Tax rate	40	%

Kalman wants to earn after-tax income of $9,000 next year. What is the before-tax income?

Before-tax income = $9,000/(1 - 0.4) = $15,000

Suppose Kalman's tax rate was 35%, the before-tax income needed to earn $9,000 after taxes would be

lower $15,000. The before-tax income in this case would be $13,864 (Round to the nearest dollar). The sales revenue needed to earn this level of before-tax income would be $60,461 (Round to the nearest dollar). We can show that this is true by constructing an income statement.

Sales	$60,461
Total variable cost (0.25 $60,461)	15,115
Contribution margin	$45,346
Total fixed cost	31,500
Operating income	$13,846
Less: income taxes (0.35 $13,846)	4,846
After-tax income	$9,000

Using the Kalman Company data, for each of the following scenarios, fill in the before-tax income needed and the sales revenue needed to earn the given after-tax income. Round all dollar amounts to the nearest dollar.

	Target After-Tax Income		Tax Rate		Before-Tax Income		Needed Sales Revenue
A.	$8,000		40%		$13,333		?
B.	$8,000		35%		$12,308		?
C.	$8,000		25%		$10,667		?

I got the last part "Needed Sales Revenue" wrong and the answers that are wrong are *$59778, $58,410, $56,222*