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Gala2k [10]
3 years ago
8

Garcia Company reports the following information: Net operating income after taxes $100,000 Before-tax operating income $300,000

Average invested capital $500,000 After-tax cost of capital 10% What is the residual income for Garcia Company? A) $30,000 B) $50,000 C) $250,000 D) $450,000
Business
1 answer:
Andrew [12]3 years ago
7 0

Answer:

B) $50,000

Explanation:

Cost of Capital is the rate which is required by the capital investment by the shareholders or owners of the business. Residual Income is the portion of net income after paying the investors of the company. This income is reinvested or retained by the business.

Net operating Income after tax = $100,000

Average Invested Capital = $500,000

Cost of Capital = $500,000 x 10% = $50,000

Residual Income = Net Income - Cost of capital

Residual Income = $100,000 - $50,000

Residual Income = $50,000

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Contracts are a form of private law because the terms contained within a contract bind the relevant parties, not the public as a
sasho [114]

Answer:

The correct answer is the option A: True.

Explanation:

To begin with, the contracts inside the law are regulated by the Anglo-America common law that defines a contract as the agreement between two or more parties in which they establish the basis and principles of the agreement and the clauses that could cause to end the contract. Moreover, a contract is also part of the civil law and therefore that it does not implicate the public as a whole in any way due to the fact that in order to be a correct contract the parties must accept the bond between only them and nobody else.  

5 0
3 years ago
Fredrick Paulson Tie Co. manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on
Rus_ich [418]

Answer:

Unitary cost= $12.30

Explanation:

Giving the following information:

Overhead rate:

Rate 1= 150% of material costs

Rate 2= $7.25 per direct labor hour.

Production:

540 neckties

raw materials= $2,110

Direct labor hours= 69 direct labor hours at a total cost of $865.

First, we need to calculate the total cost:

Total cost= 2,110 + 865 + (1.5*2,110 + 7.25*69)

Total cost= $6,640.25

Unitary cost= 6,640.25/540= $12.30

5 0
3 years ago
Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the
Papessa [141]

Excise taxes on tobacco and alcohol and state sales taxes are often criticized for being regressive. Although everyone pays the same rate regardless of income, this might be so because low-income individuals are more prone than high-income individuals to purchase alcohol, tobacco, and gasoline.

<h3>What are Excise taxes?</h3>
  • Any duty on produced items that are assessed at the time of manufacture rather than the time of sale is known as an excise or excise tax.
  • Excises and customs duties are frequently used interchangeably, although customs taxes are imposed on already-existing products when they cross a defined border in one direction, whereas excise is imposed on goods that were created inland.
  • State sales taxes and excise taxes on alcohol and cigarettes are frequently criticized for being regressive.
  • Despite the fact that everyone pays the same rate regardless of income, this may be the case because people with low incomes are more likely than those with higher incomes to buy alcohol, cigarettes, and fuel.

To learn more about Excise taxes refer to:

brainly.com/question/22358769

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5 0
2 years ago
Under which circumstances must an employer provide a guardrail?
Arada [10]

Answer:

A, B and D

Explanation:

Under  OSHA laws, employers must provide a safe workplace for the employees. All the danger areas must be indicated with either painting or signage. Using guard rails is an excellent way of demarcating danger zones. They keep employees away from dangerous spots. In this case, an employer should use guard rails in the following circumstances.

1.Around every floor hole into which a worker can accidentally walk. The guard rails will form a barrier that will prevent accidental falls into the hole.

2.Around every open-sided platform, floor, or runaway that is 4 feet or higher off the ground or next level. The guard rails form a wall that prevents employees in raised levels from falling to the ground.

3. Regardless of height, if a worker can fall into dangerous machines or equipment. In case of an incident, the guard rails will stop an employee from falling into dangerous machines or equipment.

8 0
3 years ago
Which of the following is a way to bring distant managers together to brainstorm and is a written approach to creative problem s
Trava [24]

Answer: Brainstorming

Explanation: Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members. It is the basic technique for developing ideas and getting people to think up new concepts and solutions to a problem.

Brainstorming also triggers creativity and great idea generation.

8 0
3 years ago
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