To incorporate income tax into cost-volume-profit calculations,managers should use:

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Cost-volume-profit analysis is focused on understanding the relationship between sales volume, costs, and profit, and how changes in these factors impact the overall profitability of the business. When incorporating income tax into these calculations, it's essential to use a consistent measure of profit, and that measure should be before tax profit (Choice C). This is because income tax is a variable cost (costs that vary based on the level of sales) and can't be accurately calculated using net income or profit after tax figures. By using before tax profit, managers can calculate the effect of income tax on the overall profitability of the business and make more informed decisions about pricing and sales volume.

To Incorporate Income Tax into Cost-Volume-Profit Calculations,managers Should Use