How much revenue is needed to yield an after-tax profit of 8 percent of revenue? How many garden...

(CVP; taxes) Sheridan Shacks makes portable garden sheds that sell for $1,800 each. Costs are as follows:

	Per Unit	Total
Direct material	$800
Direct labor	90
Variable production overhead	60
Variable selling and administrative cost	50
Fixed production overhead		$200,000
Fixed selling and administrative		60,000

Assume a tax rate for the company of 35 percent.

a. If Sheridan Shacks wants to earn an after-tax profit of $182,000, how many garden sheds must it sell?

b. How much revenue is needed to yield an after-tax profit of 8 percent of revenue? How many garden sheds does this revenue amount represent?