In a situation wherein Country Y has a progressive tax system for income, with no credits or deductions, a CEO earning $2.5 million per year would pay the most as a percentage of income in the country Y. Therefore, the option D holds true.
<h3>What is the significance of a progressive tax system?</h3>
A progressive tax system can be referred to or considered as a system wherein the percentage of tax to be levied increases with an increase in the total taxable income for an individual. The rates of taxation under this system are defined under percentage.
In the situation given above, when a CEO in country Y earns $2.5 million, i.e., more than any other person mentioned above, he will be the one who will have to pay the most taxes as a part of percentage of his income.
Therefore, the option D holds true and states regarding the significance of the progressive tax system.
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1. True
2. False
3. True
Sorry if I get the wrong answers!!!
Monthly statements, investment options, and online banking services.
Answer:
Effect on income= $-117,500
Explanation:
Giving the following information:
Kawai Corporation, which makes and sells 85,000 radios annually, currently purchases the radio speakers it uses for $8.00 each.
Kawai estimates that the cost of materials and labor needed to make speakers would be a total of $6.50 for each speaker. Also, supervisory salaries, rent, and other manufacturing costs would be $170,000. Allocated facility-level costs would be $75,000.
Buy= 85000*8= $680,000
In house:
Production costs= 6.5*85,000 + 75,000= 627,500
Other fixed costs= 170,000
Total cost= $797,500
Effect on income= 680,000 - 797,500= $-117,500