In CVP analysis,focusing on target net profit after tax rather than operating profit before tax:
A)will increase the break-even point.
B)will not change the break-even point.
C)will decrease the break-even point.
D)does not allow calculation of break-even point.

Question

Quizplus · Accepted Answer

The break-even point is determined by fixed costs, variable costs, and sales price, and is not directly affected by whether the focus is on net profit after tax or operating profit before tax.

In CVP Analysis,focusing on Target Net Profit After Tax Rather