1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yanalaym [24]
3 years ago
11

The break-even tax rate between a taxable corporate bond yielding 7 percent and a comparable nontaxable municipal bond yielding

5 percent can be expressed as ___________.
A. 0.05 / (l-t*) = 0.07
B. 0.05 - (l-t*) = 0.07
C. 0.07 + (l-t*) = 0.05
D. 0.05 x (l-t*) = 0.07
E. 0.05 x (l+t*) = 0.07
Business
1 answer:
finlep [7]3 years ago
7 0

Answer:D. 0.05 x (l-t*) = 0.07

Explanation: The break even tax rate is the tax rate at which industry players don't find it advantageous or disavantageous to invest in an economy, any tax rate higher than the break even tax rate will cause investors to loss certain amount of profits.

A tax rate below the break even tax rate will cause investors to want to make investment decisions as it will be beneficial and profitable to invest more money into the economy.

Calculation:

7/100=5/100(I-t*),the break even tax rate can be expressed as

=0.07=0.05*(I-t).

You might be interested in
The degree of customer contact measuresthe amount of time the customer is separated from the service delivery system.the amount
Aleksandr-060686 [28]

Answer:

the amount of time the customer is in the service delivery system.

Explanation:

In the case when there is a degree of contacting the customer determined that the value of the time that the customer would be in the system that represent the delivery of the service at the time when the service is generally produced or

So as per the given situtaion, the above statement represent the answer

3 0
2 years ago
The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoy
marin [14]

Answer:

1.COST BEHAVIOUR

Variable Fixed

$321,000 $182,000

SELLING OR ADMINISTRATIVE

Cost $197,000

PRODUCT COST

Direct Indirect

$212,000 $94,000

2. $153 per set

3. I would expect the average product cost per set to increase.

Explanation:

1. Calculation to Enter the dollar amount of each cost item under the appropriate headings

COST BEHAVIOUR

VARIABLE FIXED

Direct labor $118,000 $0

Advertising $0 $50,000

Factory supervision $0 $40,000

Property taxes, factory building$0 $3,500

Sales commissions$80,000 $0

Insurance, factory $0 $2,500

Depreciation, administrative office equipment$0 $4,000

Lease cost, factory equipment$0 $12,000

Indirect materials, factory $6,000 $0

Depreciation, factory building $0 $10,000

Administrative office supplies (billing) $3,000 $0

Administrative office salaries $0 $60,000

Direct materials used (wood, bolts, etc.)$94,000 $0

Utilities, factory $20,000 $0

TOTAL COSTS $321,000 $182,000

SELLING OR ADMINISTRATIVE

COST

Direct labor $0

Advertising $50,000

Factory supervision $0

Property taxes, factory building $0

Sales commissions $80,000

Insurance, factory $0

Depreciation, administrative office equipment $4,000

Lease cost, factory equipment $0

Indirect materials, factory $0

Depreciation, factory building $0

Administrative office supplies (billing) $3,000

Administrative office salaries$60,000

Direct materials used (wood, bolts, etc.) $0

Utilities, factory $0

TOTAL COSTS $197,000

PRODUCT COST

DIRECT INDIRECT

Direct labor $118,000 $0

Advertising $0 $0

Factory supervision $0 $40,000

Property taxes, factory building$0 $3,500

Sales commissions $0 $0

Insurance, factory $0 $2,500

Depreciation, administrative office equipment $0 $0

Lease cost, factory equipment$0 $12,000

Indirect materials, factory$0 $6,000

Depreciation, factory building $0 $10,000

Administrative office supplies (billing) $0 $0

Administrative office salaries $0 $0

Direct materials used (wood, bolts, etc.)$94,000 $0

Utilities, factory$0 $20,000

TOTAL COSTS $212,000 $94,000

Therefore the dollar amount of each cost item under the appropriate headings will be :

COST BEHAVIOUR

Variable Fixed

$321,000 $182,000

SELLING OR ADMINISTRATIVE

Cost $197,000

PRODUCT COST

Direct Indirect

$212,000 $94,000

2. Computation to determine the average product cost of one patio set.

Using this formula

Average product cost of one patio set =(Direct costs +Indirect costs)/Capacity set per year

Let plug in the formula

Average product cost of one patio set=($212,000+$94,000)/2,000 sets

Average product cost of one patio set =$306,000/2,000 sets

Average product cost of one patio set = $153 per set

Therefore The Average product cost of one patio set will be $153 per set

3. In a situation were the production drops I Would expect the average product cost per set to INCREASE, reason been that the fixed costs would extend over few units which will inturn cause the average cost per unit to increase.

3 0
3 years ago
If, over a given period, the index of export prices rises by 10% and the index of import prices rises by 5%, the terms of trade
Scrat [10]

Answer:

B) False

Explanation:

When the terms of trade improve, it means that a country is actually selling more goods and services to foreign countries than the total amount of goods and services it is importing from foreign countries. For every dollar that a country is exporting, it is importing less than 1 dollar. But this improvement in the terms of trade will actually result in an appreciation of the domestic currency. This means that for every dollar that you export, you will be able to import more goods from foreign countries.

3 0
2 years ago
Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the i
RideAnS [48]

Answer:

Cash paid 168,000

Explanation:

Assuming that there were no inventory at start of the year

purchases during the year :

Sold                                                     = 155

Closing inventory                              = 21

Total purchase (155+21)                    = 176

Cash paid for merchandise = total purchase - increase in liability

Cash paid = 176-8 = 168

4 0
3 years ago
Read Case Study 5:2 Gas or Grouse? in Chapter 5 of your textbook Business Ethics Concepts & Cases (8th Edition) by Manuel G.
wolverine [178]

Answer:

1-b

2-d

3-a

4-d

5-a

Explanation:

8 0
3 years ago
Other questions:
  • Troy Engines, Ltd., Manufactures A Variety Of Engines For Use In Heavy Equipment. The Company Has Always Produced All Of The Nec
    11·1 answer
  • Javier and Anita Sanchez purchased a home on January 1, 2019, for $600,000 by paying $200,000 down and borrowing the remaining $
    8·1 answer
  • What will an executive summary for a new business contain that a business plan for a well-established business will not?
    10·2 answers
  • prepare a short oral report that describes one of the services of the united nations that could be of value to a person working
    14·1 answer
  • When is a stock split more likely to occur?
    8·1 answer
  • Bill Broker prints an office policy that says he requires a security deposit of "$350 for whites and $500 for blacks" in his are
    14·1 answer
  • Tim, a single taxpayer, operates a business as a single-member LLC. In 2018, his LLC reports business income of $394,000 and bus
    14·1 answer
  • Which of the following statements is CORRECT? a. If two firms differ only in their use of debt—i.e., they have identical assets,
    10·1 answer
  • Which of the following describes a situation where monopolistic<br> competition exists?
    5·2 answers
  • emily purchased a building to store inventory for her business. the purchase price was $760,000. emily also paid legal fees of $
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!