Answer:
$4,392
Explanation:
Sunland Company
Therefore the costs are eliminated if they outsource the manufacturing:
Direct materials $9,576
Direct labor $12,882
Variable overhead $14,364
Total $36,882
Their new cost is ($2.85 X 11,400) $32,490
$36,882 - $32,490 = $4,392
If Sunland accepts the offer the net income increase (decrease) by $4,392
Answer:
B. Income Tax Expenses
Explanation:
The Purpose of the Income Statement in Financial Statement Preparation is to ascertain the profit or loss of a business entity for a particular year. Usually, the format is as follows:
1. Gross Profit= Sales- Cost of Goods sold(Opening Inventory + Purchases- Closing Inventory)
2. Net Profit/ Net Loss = Gross Profit + Other Revenues and Gains - Expenses for the period.
However, income tax expense is only calculated when the net profit has been ascertained. It is usally referred to as net income before tax. It is based on this figure, that the income tax expense is then calculated based on prevailing income tax percentage.
Every other part of the income statement covers a section, but all sections should be calculated and concluded before the income tax expense can be calculated and then subtracted to arrive at the final income tax.
Answer:
The answer is A
Explanation:
The loan is an interest only loan since he is only paying the interest potion of 7%
Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount
Answer:
out of the loanable funds market.
Explanation:
In the case when the Fed purchased bonds from a financial institution so the new money shift directly out of the funds market i.e. lonable because the bank reserve would increased also they begins lending at lesser rate of interest
Therefore as per the given situation, the fourth option is correct
And, the same is relevant
