VP: Before- and After-Tax Targeted Income

Helmet-Pro Company produces helmets for bicycle racing. Currently, Helmet-Pro charges a price of $230 per helmet. Variable costs are $92.00 per helmet, and fixed costs are $1,158,000. The tax rate is 25 percent. Last year, 14,000 helmets were sold.

Required:

1. What is Helmet-Pro's net income for last year? $fill in the blank 1 2. What is Helmet-Pro's break-even revenue? In your computations, round the contribution margin ratio to two decimal places. $fill in the blank 2 3. Suppose Helmet-Pro wants to earn before-tax operating income of $829,200. How many units must be sold? Round to the nearest whole unit. fill in the blank 3 units

4. Suppose Helmet-Pro wants to earn after-tax net income of $590,850. How many units must be sold? In your computations, round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit. fill in the blank 4 units

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 $601,770? Round to the nearest whole unit. fill in the blank 5 units