NUBD Inc. ignored the effect of income taxes in its calculation of the sales volume needed to achieve a target profit of P1,000,000. If the company considers the impact of income taxes in its calculation, which of the following statements would be true? * O Total fixed cost will increase. O Contribution margin per unit will decrease. O Sales volume to reach an after-tax profit will increase. O Sales price per unit will decrease.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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NUBD Inc. ignored the effect of income taxes in its calculation of the sales volume needed to
achieve a target profit of P1,000,000. If the company considers the impact of income taxes in
its calculation, which of the following statements would be true? *
O Total fixed cost will increase.
O Contribution margin per unit will decrease.
O Sales volume to reach an after-tax profit will increase.
O Sales price per unit will decrease.
Transcribed Image Text:NUBD Inc. ignored the effect of income taxes in its calculation of the sales volume needed to achieve a target profit of P1,000,000. If the company considers the impact of income taxes in its calculation, which of the following statements would be true? * O Total fixed cost will increase. O Contribution margin per unit will decrease. O Sales volume to reach an after-tax profit will increase. O Sales price per unit will decrease.
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