The formula used in performing cost-volume-profit (CVP)analysis for the "before-tax target",where t is the tax rate,is
A)(Total Fixed Costs ´ t)/ Unit Contribution Margin.
B)(Total Fixed Costs + (Target Profit ´ t))/ Unit Contribution Margin.
C)(Total Fixed Costs + Target Profit)/ Contribution Margin Ratio.
D)After-Tax Profit / (1-t).

Question

Quizplus · Accepted Answer

The Answer of The formula used in performing cost-volume-profit (CVP)analysis for the "before-tax target",where t is the tax rate,is
A)(Total Fixed Costs ´ t)/ Unit Contribution Margin.
B)(Total Fixed Costs + (Target Profit ´ t))/ Unit Contribution Margin.
C)(Total Fixed Costs + Target Profit)/ Contribution Margin Ratio.
D)After-Tax Profit / (1-t).

The Formula Used in Performing Cost-Volume-Profit (CVP)analysis for the "Before-Tax