Mulvaney Inc. ignored the effect of income taxes in its calculation of the sales volume needed to achieve a target profit of $1,000,000. If the company considers the impact of income taxes in its calculation, which of the following statements would be true?
A) Total fixed costs will increase.
B) Contribution margin per unit will decrease.
C) Sales volume will increase to reach an after-tax profit.
D) Sales price per unit will decrease.
Correct Answer:
Verified
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