Hi,

Can someone tell me what I did wrong for part (a) of this problem? I get $901,085,000 for the net income before tax, why is the answer $1,085,000?

Thanks,

Wildhorse Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022 Variable costs (per pair of shoes) Direct materials $43 Direct manufacturing labour 18 Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs $81 20 $2,675,000 Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs 505,000 735,000 $3,915,000 $181 Selling price per pair of shoes Expected revenues, 2022 (50,000 units) Income tax rate $9,050,000 40% (a) Your Answer Correct Answer (Used) * Your answer is incorrect. Calculate the projected operating income before tax for 2022. Operating income before tax $ 901085000