
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.One of the helpful uses of CVP analysis is the determination of the sales required to generate a target profit (income).
Post tax earnings are a company’s pretax earnings less income tax.
Whereas pretax earnings are a company's earnings after all operating expenses have been deducted from total sales or revenues, but before income taxes have been subtracted.
Contribution margin means sales price less variable costs.Contribution represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs.
To Calculate:The pretax income and post- tax income calculated is asked to be calculated in the specific question.

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Chapter 21 Solutions
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- Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,161,000 and accounts receivable averaged $370,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's non-discount customers? (Hint:Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the non-discount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Effective cost of trade credit =arrow_forwardprovide solutionarrow_forwardWhat is the estimate of the overheads if 16,000 square meters are to be cleanedarrow_forward
- Kindly help me with this General accounting questions not use chart gpt please fast given solutionarrow_forwardWhat was cost of goods manufactured for the period?arrow_forwardDuring September, 8,500 units were produced. The standard quantity of material allowed per unit was 9 pounds at a standard cost of $5.50 per pound. If there was an unfavorable usage variance of $18,975 for September, what amount must be the actual quantity of materials used?arrow_forward
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