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sveta [45]
3 years ago
14

If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulte

d from using LIFO
Business
1 answer:
Inessa05 [86]3 years ago
3 0

Answer:

$800

Explanation:

The computation of the tax saving from using LIFO is shown below:

= Cost of goods sold under LIFO × tax rate  - Cost of goods sold under FIFO × tax rate

= $10,000 × 40% - $8,000 × 40%

= $4,000 - $3,200

= $800

By applying the above formula, the tax saving resulted from using the LIFO is $800 and the same is to be considered

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Swisher, Incorporated reports the following annual cost data for its single product: Normal production level 30,000 units Direct
wlad13 [49]

Answer:

Profit decreases by $322,600

Explanation:

Normal production level = 30,000 units

Cost of direct material per unit =$6.40 , total cost = $6.40*30,000=$192,000

Cost of direct labor per unit =$3.93 , total cost =$3.93*30,000=$117,900

Variable over head cost per unit=$5.80, total cost =$5.80*30,000=$174000

Fixed overhead total cost = $150,000

Production cost with 30,000 units will be;

$192,000 + $117,900 + $174000 + $150,000 =$633900

Normal selling price of product  per unit = $48

Revenue after normal sell of 30,000 units $48 = 30,000*48=$1440000

Profit obtained : $806,100

Increasing the production to 50,000 units you can calculate the projected cost of production

New production level = 50,000 units

Cost of direct material per unit =$6.40 , total cost = $6.40*50,000=$320,000

Cost of direct labor per unit =$3.93 , total cost =$3.93*50,000=$196,500

Variable over head cost per unit=$5.80, total cost =$5.80*50,000=$290,000

Fixed overhead total cost = $150,000

Production cost with 30,000 units will be;

$320,000 + $196,500 + $290,000 + $150,000 =$956,500

Normal selling price of product  per unit = $48

Revenue after normal sell of 30,000 units $48 = 30,000*48=$1440000

Profit obtained =$483,500

Decreased in profit = $806100-$483500 =$322,600

4 0
3 years ago
The goal of global market segmentation is to break down a new foreign market for a product or a service into different groups of
Lunna [17]

The goal of global market segmentation is to break down a new foreign market for a product or a service into different groups of consumers so the firm can <u>tailor its </u><u>marketing mix </u><u>to each individual segment</u>.

More about marketing mix:

The marketing mix is the collection of activities, or methods, that a business employs to sell its brand or merchandise. A typical marketing mix is comprised of the four Ps: price, product, promotion, and place. Today, however, the marketing mix is progressively including several more Ps as essential mix components, such as Packaging, Positioning, People, and even Politics.

Price mix is the cost incurred by the company to deliver a product to the customer. Product mix exemplifies the nature of the good that the company is selling to the customer. Place mix is the method used to distribute the goods at a time and place that are convenient for the consumer.

Learn more about marketing mix here:

brainly.com/question/14410009

#SPJ4

<u />

5 0
1 year ago
When you take out a mortgage your home becomes the collateral. true or false
Y_Kistochka [10]

Answer:

True

Explanation:

A mortgage loan is done to purchase or create real state or by existing property owners to raise funds for any purpose, in both cases, while putting a lien on the property being mortgaged.

The collateral will be the property, because is the item pledged to guarantee the repayment of a loan.

Foreclosure or repossession:

The act upon which the lender will take possession and sell the property to pay off the loan in the event the borrower fails to perform the payment in terms.

6 0
2 years ago
What should a manager ideally do after implementing a solution to a given work-related problem?
Alecsey [184]

After implementing a solution to a given work related problem the manager should evaluate the outcome of the solution

Explanation:

A manager should have leadership qualities where he or she is in charge of the entire group of people in the industry and is responsible for any mistakes or errors caused by the employees.

He or she should know how to tackle and provide solutions to a problem that is being faced by the company.

A manager should be a good role model for his/her subordinates and encourage them in solving their problems by themselves.

6 0
3 years ago
If there is a high demand for a product, then production will be__.
Cloud [144]

Answer:

the answer is b. increased

6 0
3 years ago
Read 2 more answers
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