$8,000 (80% limitation) amount of year 2 income may be offset by the carryforward of the year 1 net operating loss
When a business' running costs are higher than its gross income, it experiences an operating loss (or revenues in the case of a service-oriented company).
Operating profit is the profit a business makes before taxes and interest. In the same manner as cost of goods sold, selling, general, and administrative expenditures are, interest and taxes are not regarded as operating costs. In many cases, businesses make enough money to pay their costs and turn a profit.
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Answer:
D an explanation of why global temperatures are rising
Explanation:
<u>Answer:</u> The rate of interest is 7.18 %
<u>Explanation:</u>
To calculate the rate of interest, we use the equation used for the interest compounded monthly follows:
A = Amount after time period 'T' = $100,000
P = Principal amount = $50,000
R = rate of interest = ?
n = Number of times interest applied per time period = 1 (annually)
T = time period = 10 years
Putting values in above equation, we get:
Calculating the rate of interest in percentage:
Hence, the rate of interest is 7.18 %
Answer:
393 units will need to be sold to breakeven
Explanation:
Break even point is the point where a Company makes neither makes a profit nor a loss.
Step 1 : Calculate new variables
New Sales = $250 x 1.40 = $350
Variable Costs = $250 x 30 % = $75
New Fixed Costs = $120,000 x 90 % = $108,000
Step 2 : Break even (units)
Break even (units) = Fixed Costs ÷ Contribution per unit
= $108,000 ÷ ($350 - $75)
= 393 units
Thus, 393 units will need to be sold to breakeven
Answer: false
Explanation:
The statement is false because cost leadership is not really sustainable as it's cost effective due to the maintenance charge required to keep them in a great care despite the low operational cost being runned by the organization
