Learner Company wants to earn a net income of \$250,000 next year. Product costs are as follows:

Learner Company wants to earn a net income of \$250,000 next year. Product costs are as follows:

Direct materials per unit of product \$60; Direct labor per unit of product \$105; Variable overhead per unit of product \$10; Total fixed factory overhead \$600,000

Fixed selling and administrative expense totals \$300,000. Learner Company has a tax rate of 35 percent.

Based on the given information, calculate the before-tax profit needed to achieve an after-tax target of \$325,000.

a.\$400,000

b.\$200,000

c.\$250,000

d.\$500,000

Learner Company wants to earn a net income of \$250,000 next year. Product costs are as follows:

Learner Company wants to earn a net income of \$250,000 next year. Product costs are as follows:

Direct materials per unit of product \$60; Direct labor per unit of product \$105; Variable overhead per unit of product \$10; Total fixed factory overhead \$600,000

Fixed selling and administrative expense totals \$300,000. Learner Company has a tax rate of 35 percent.

Based on the given information, calculate the before-tax profit needed to achieve an after-tax target of \$325,000.

a.\$400,000

b.\$200,000

c.\$250,000

d.\$500,000