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?     aTotal fixed cost will increase. bContribution margin per unit will decrease. cSales volume to reach an after-tax profit will increase. dSales price per unit will decrease.

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
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Problem 2MC: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)...
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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?
 
 
aTotal fixed cost will increase.
bContribution margin per unit will decrease.
cSales volume to reach an after-tax profit will increase.
dSales price per unit will decrease.
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