Answer:
a. -$15,000
b. $165,000
Explanation:
The computation is shown below:
The net income is
= EBIT - interest expense
where,
EBIT = Sales - cost of good sold - administrative expense and selling expenses - depreciation expense
= $930,000 - $680,000 - $85,000 - $180,000
= -$15,000
So, the net income is
= -$15,000 - $55,000
= -$70,000
And, The operating cash flow is
= EBIT + Depreciation - income tax expense
= -$15,000 + $180,000 - $0
= $165,000
Answer:
Tax = 120 per unit
Explanation:
First lets calculate Socially optimum Marginal Profit,
This can be computed by factoring in the marginal external benefit in the costs.
thus,
PMB = (PMC + MD)
This gives us the socially profit maximizing level of Product Q in quantity produced terms. we solve for Q the above equation. As generally profit is maximized at Marginal cost = Marginal Revenue
540 - 6Q = 8Q + 4Q
540 = 18Q
Q = 30 units
Since the tax amount should equal the value of marginal external damage so the amount of tax at socially optimum level thus is,
MD = T,
that gives T = 4 * 30 = 120 per unit
This shall then give the revised Marginal cost function of
Revised marginal cost = 8Q + 120. This corrects the externality by making production more expensive.
Hope that helps.
If they only contact you when they want something from you
Prior sales and communication activities
To determine the current communication budget, rule-of-thumb methods use prior sales and communication activities. These methods are simple to implement, but they do have some limitations.
<h3>What is rule-of-thumb?</h3>
A rule-of-thumb is a heuristic guideline that gives simplified counsel or a fundamental rule-set for a certain subject or course of action. It is a broad principle that provides specific directions for completing or performing a task. Generally, rules of thumb emerge from practice and experience rather than scientific study or a theoretical underpinning.
To learn more about rule-of-thumb from given link
brainly.com/question/943703
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