OBJE tions. Identify at least four of these assumptions. (CMA adapted) Exercise 16-16 CVP: Before- and After-Tax Targeted Income Helmet-Pro Company produces helmets for bicycle racing. Currently, Helmet-Pro charges a price of $240 per helmet. Variable costs are $96 per helmet, and fixed costs are $1,255,800. The tax rate is 25 percent. Last year, 14,000 helmets were sold. SHOW M HOW Required: 1. What is Helmet-Pro's net income for last year? 2. What is Helmet-Pro's break-even revenue? (Round to the nearest dollar.) 3. Suppose Helmet-Pro wants to earn before-tax operating income of $850,000. How many units must be sold? (Round to the nearest unit.) 4. Suppose Helmet-Pro wants to earn after-tax net income of $625,000. How many units must be sold? (Round to the nearest unit.) 5. Suppose the income tax rate rises to 35 percent. How many units must be sold for Helmet-Pro to earn after-tax income of $625,000? (Round to the nearest unit.)