Answer
The question requires
(a) calculation of number of units to be sold to earn target "operating" income of 450,000 and;
(b) Number of units to be sold to earn target "net" income of 450,000.
As explained in 3-21(1) part, here the question specifically ask you to provide before tax (operating) and after tax (net) results separately for the same scenario. Make sure to treat them separately as follows;
Work Step by Step
Note-1: Fixed Costs
Manufacturing fixed costs 1,200,000
fixed marketing costs 300,000
total fixed costs 1,500,000
Note-2: Contribution Margin Per Unit
Sales Price 30
Variable Costs - direct 21
Variable Costs - sale commissions (30 * 5%) = 1.5
Contribution margin per unit = (30 - 21 - 1.5) = 7.50
Note-3:
450,000 / (100% - 25% tax rate) = 600,000
