Problem 3-71 (Algo) Extensions of the CVP Analysis-Taxes (LO 3-4) Davis Devices makes an electronic bathroom scale that can connect to a smartphone and automatically record various measurements for tracking progress. Davis has experienced reasonable growth in the three years it has been selling the scale, where advertising was often by word of mouth and reviews left on online e-commerce sites. The Chief Marketing Officer (CMO) at Davis believes that a formal advertising campaign will be necessary to continue the current growth trend. To prepare for the campaign, the company's cost analyst has prepared and presented the following financial data for the current year, year 1: Variable costs: Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) Total variable costs (per unit) Fixed costs (annual): Manufacturing Selling Administrative Total fixed costs (annual) Selling price (per unit) Expected sales revenues, year 1 (35,500 units) Davis has an Income tax rate of 22 percent. $ 20 12 18 $ 50 $94,600 77,500 162,500 $334,600 $85 $ 2,150,000 The CMO has set the sales target for year 2 at a level of $2,450,000 (or 42.500 units). The CMO believes that market conditions prevent any possible increase in price. Required: a. What is the projected after-tax operating profit for year 1?