The Formula Used in Performing Cost-Volume-Profit (CVP)analysis for the Target

question 89

Multiple Choice

The formula used in performing cost-volume-profit (CVP) analysis for the Target Profit in Sales Dollars,where t is the tax rate,is

• A)(Total Fixed Costs + Before-Tax Target Profit)/ Unit Contribution Margin.
• B)(Total Fixed Costs + Before-Tax Target Profit)/ Contribution Margin Ratio.
• C)(Total Fixed Costs ´ t)/ Unit Contribution Margin.
• D)(Total Fixed Costs + (Target Profit ´ t))/ Unit Contribution Margin.

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