Olivian Company wants to earn $300,000 in net (after-tax) income next year. Its product is priced at $250 per unit. Product costs include: Direct materials $75.00 Direct labor $55.00 Variable overhead $12.50 Total fixed factory overhead $435,000 Variable selling expense is $10 per unit; fixed selling and administrative expense totals $285,000. Olivian has a tax rate of 40 percent. Required: Question Content Area 1. Calculate the before-tax profit needed to achieve an after-tax target of $300,000. $fill in the blank e5f89a04e06f077_1 500,000 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. If required, round your answer to the nearest whole unit. fill in the blank e5f89a04e06f077_2 12,513 units Feedback Area Feedback Question Content Area 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar. Olivian Company Income Statement For the Coming Year Total Sales $Sales 3,128,250 Total variable expense Total variable expense 1,908,232.50 Total contribution margin $Total contribution margin 1,220,018 Total fixed expense Total fixed expense 720,000 Operating income $Operating income 500,018 Less: Income taxes Less: Income taxes 200,007 Net income $Net income 300,011 Feedback Area Feedback 3. See Cornerstone 16.4. Use a contribution margin format income statement. Question Content Area 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a $300,000 target net income be higher or lower than the units calculated in Requirement 2? Lower Calculate the number of units needed at the new tax rate. In your calculations, round before-tax income to the nearest dollar. Round your answer to the nearest whole unit. fill in the blank 6843b6ff2fe401d_2 12,118 units