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