At Parks and Helms Designers, a group of architects are developing the first drawings for a proposed multiuse office development
1 answer:
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Answer:
CMR: 52% --> each dollar of sales generates 52 cent of contribution
VCR: 48% --> 48 cent per dollar of sales are cost
BEPu: 10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.
BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.
Explanation:
selling price per hat: $ 25
variable cost per hat: $ 12
Contribution per unit $ 13
Contribution Ratio:
13/25 = 0.52
Variable cost Ratio:
12/25 = 0.48
Fixed cost: 130,000
Break even point:
dollars of sales BEP: 250,000
units sold to pay up variable and fixed cost: 10,000
Answer:
Check the explanation
Explanation:
As per publication 15-b Of employers tax guide fringe benefits provides you how to use lease value rules and when to use , The following question is answered according to it
Employee Name : Malcolm Figueroa
Annual Lease Method :
1 Fair market value of vehicle 35000
2 Annual lease value : 9250
3 Prorated Annual lease percentage 3600 / 22000 = 16.3636%
4 Prorated Annual lease Value: Annual lease value * Prorated Annual lease percentage = $
9250 * 16.3636% = 1513.633$
5 iF FUEL PROVIDED BY EMPLOYER ENTER MILE 3600 * 5.5cents = 198$
Total fuel charges = 198$
6 Total personal Use Taxable income 1513.633 + 198 = $1711.633
Kindly check the attached image below to see the well arranged accounting entry above.
First we will find the annual lease value from table given by using fmv of automobile i.e for 35000 its 9250
Now we will Multiple annual lease value by % of personal driven by employee
which is calculated by 3600/22000*100= 16.3636%
9250*16.3636%= 1513.633
So this the personal usage vehicle which will be added = $1513.633
And we will add the fuel cost to this amount which is = 3600*5.5cents= $198
total personal use taxable = $1711.633
