Madden Company has projected its income before taxes for next year as shown below. Madden is subject to a 40% income tax rate.

Sales (160,000 units)		$ 8,000,000
Cost of sales
Variable costs	$2,000,000
Fixed costs	3,000,000
Total costs		(5,000,000)
Income before taxes		$ 3,000,000

Question

Maddens net assets are $36,000,000. The dollar sales that must be achieved for Madden to earn a 10% after-tax return on assets would be

• A.$8,800,000

• B.$16,000,000

• C.$12,000,000

• D.$6,880,000