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.