Answer:
Explanation:
1. 
Contribution Margin=Sales - variable cost =$8.75-$3.50=$5.25
Contribution Margin Ratio = Contribution Margin / Sales = $5.25/ $8.75=60%
Pre-Tax Net Income=Net Income/(1-tax rate)
$117,600/(1-0.36)=$183,750
Target Revenue =Fixed cost +Target Pre-Tax net Income/Contribution margin Ratio =($430,500+$183,750)/0.6=$1,023,750
2. Number of customers needed to Break Even
Fixed costs/Contribution margin per unit=$430,500/$5.25=82,000 Customers
Number of customers to earn 117,600 = (Fixed costs + 117,600)/5.25 = (430,500+117,600)/5.25 = 104,400
3.  
Sales (170,000*8.75)   1,487,500
Less: Cost of goods sold   (170,000*3.50)  -595,000
Contribution margin  892,500
Less: fixed costs  -430,500
Net Income before tax  462,000
Less: tax rate (462,000*36%)  - 166,320
Net Income after tax   295,680