To determine the effect of income tax on a CVP calculation, managers should consider
A)target operating income.
B)contribution margin.
C)tax as a variable expense in determining contribution margin.
D)selling price.
E)target net income.

Question

Quizplus · Accepted Answer

Managers should consider the target net income because it accounts for the after-tax income, which is crucial for understanding the impact of income tax on the overall profitability and CVP analysis.

To Determine the Effect of Income Tax on a CVP