In CVP analysis it is best to use after-tax income when determining the volume of sales required to earn a target profit.

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In CVP analysis, it is recommended to use pre-tax income when determining the volume of sales required to earn a target profit. By using pre-tax income, the analysis is simplified as tax implications can vary based on various factors such as tax rates and deductions. Using after-tax income can complicate the analysis and make it more difficult to determine the required level of sales to achieve the desired profit.

In CVP Analysis It Is Best to Use After-Tax Income