Economics · Cost and Management Accounting
Arrange the following steps in the correct sequential order for calculating the total sales volume (in Rupees) required to achieve a specific target profit after tax: A. Determine the specific post-tax profit target desired by management. B. Convert the post-tax profit target to a required pre-tax profit using the applicable tax rate. C. Add the total fixed costs to the calculated pre-tax profit amount. D. Divide the resulting aggregate of fixed costs and pre-tax profit by the Profit/Volume (P/V) Ratio. Choose the correct answer from the options given below:
- 1B, A, C, D
- 2A, C, B, D
- 3A, B, C, D✓
- 4B, C, A, D
Correct answer
A, B, C, D
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