Hi. I need to know how the After Tax income of $120,000 is calculated. I have the explanation off to the side from the professor, but I can't figure out how the $120,000 income tax was calculated to start off. Thanks!

5/30/ 19 Dr. Darryl E. Allen, Ph.D DEF Company Fall 2018 Before Tax 850,000 + 5 50, 800 Target Operating Income (20% of $1,400,000) 280,000 Total fixed Costs 470,000 Target Contribution Margin 750,000 Target Margin/room nights (750,000/15,000) Variable costs Price per room 55 Proof: Total room revenues ($55 *15,000) 825,000 Total costs Variable costs ($5 *15000) 75,000 calculate Fixed costs 470,000 545,000 break even Operating income 280,000 9400 rooms. After Tax NIBT 400, 5050 Income Tax 120,000 280,000 Tax 30%, 120, 060 Target Operating Income (20% of $1,400,000) Total fixed Costs 470,000 870,000 NIAT 701, 280, 20 Target Contribution Margin Target Margin/room nights (870,000/15,000) 58 Variable costs Price per room 63 Proof: Total room revenues ($63 *15,000) 945,000 Total costs Variable costs ($5 *15000) 75,000 Fixed costs 470,000 545,000 NIBT 400,000 Less:Tax (30%) (120,000) NIAT 280,000