Answer:
The sales tax is regressive with respect to income
Explanation:
sales tax by Jennifer = 0.1*30000
= 3000
tax/income = 3000/50000
= 6%
sales tax by steve = 0.1*27000
= 2700
tax/income = 2700/30000
= 9%
The tax increases with decrease in income, it indeed is regressive on the whole.
Therefore, The sales tax is regressive with respect to income
Answer:
Order size = 200 units
Number of order = 5 times
Explanation:
<em>The number of order per year will be equal to the Annual demand divided by the EOQ.</em>
<em>No of orders = Annual Demand / EOQ</em>
Economic order quantity (EOQ)
The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.
It is computed using he formulae below
EOQ = √(2× Co× D)/Ch
Ch- Carrying cost per unit per annum- $1
Co- Ordering cost per order -20
EOQ =√(2× 20× 1000)/1
= 200 units
Order size = 200 units
Number of order = 1000/200 = 5 times
Answer:
d). The lessee must increase the present value of the minimum lease payments by the present value of the option price.
Explanation:
The bargain purchase option refers to the clause mention in a lease contract or agreement which provides the lessee 
or buy a leased asset from a person at the end of the 
at a price which is substantially below its 
.
In bargain purchase option, the present value of a 
can be increased by bargain purchase option. So the lessee must 
the present value of by the present value of the 
This is the impact of the bargain purchase option on the present value of .
Thus, the correct option is (d).
Answer: The answer is as follows:
Explanation:
Each item is classified as follows:
(a) Issuance of ownership shares - Common Stock
(b) Land purchased - Assets
(c) Amounts owed to suppliers - Liabilities (Accounts Payable)
(d) Bonds payable - Liabilities
(e) Amount earned from selling a product - Revenue
(f) Cost of advertising - Expense
