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iragen [17]
3 years ago
12

The managerial accountant at Donuts Galore needs to compute the target operating income to determine how much would need to be s

old to earn a target net income of $900, assuming a 40% tax rate. To earn a target net income of $900, what is the target operating income?
Business
2 answers:
Orlov [11]3 years ago
7 0

Answer:

$1500

Explanation:

Targeted Income after tax is $900

Tax rate is 40%

Income before tax = $900/(1-0.4) = $1500

soldi70 [24.7K]3 years ago
5 0

Answer:

To earn a target net income of $900,  the target operating income must be $ 1500.

Explanation:

Target Net Income = Target Operating Income ( 1- Tax Rate)

Target Operating Income = Target Net Income/ 1- Tax Rate

Target Operating Income= $900/ 1- 40%

Target Operating Income=  $900/ 1-0.4

Target Operating Income=$900/0.6

Target Operating Income= $ 1500

To earn a target net income of $900, the target operating income must be

$ 1500

Target Income Sales in Dollars = Target Income Sales in Units *Price per Unit

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Answer: True

Explanation:

Financial intermediaries are the institutions they have been put in place like a building society, bank, or unit-trust company, which are charged with the responsibility of holding funds from the lenders so that loans will be made available to people that wants to borrow.

It should be noted that banks that are financial intermediaries generate earnings when they facilitate the transfer of money from savers to borrowers by paying savers a smaller return than they demand from borrowers. This earning is their charges for the service rendered.

6 0
3 years ago
Pelican Inc., a multinational oil corporation headquartered in Denmark, conducts its operations in various nations by establishi
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Answer:

The correct answer is letter "B": franchising.

Explanation:

A Franchise is a business where one person, the <em>franchisee</em>, gains access to the proprietary knowledge, processes, and trademarks of a <em>franchisor</em>. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.

The customer is already familiar with the brand, so there is no need to invest additional resources to promote the product.

6 0
3 years ago
Look at the following email (attached). Name two good email netiquette practices used in the
Kipish [7]

Two good email etiquettes practices used in email are:

  • Inserting a Subject
  • Keep the email short and restricted to three paragraphs.

Two bad email etiquettes used in the email above are:

  • Indiscriminate use of the exclamation mark
  • Discussing personal issues in a formal email.

<h3>What are email etiquettes?</h3>

The use of acceptable language, standards, and politeness in an email is referred to as email etiquette. Business emails often need formal language as well as rigorous respect to appropriate grammar and spelling.

Five useful E-mail Etiquette are:

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8 0
1 year ago
If you are starting a new business, you can assume with some certainty that your customers will have the same level of technolog
kakasveta [241]
This would be false
8 0
3 years ago
Read 2 more answers
Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of
Hatshy [7]

Answer:

23%

Explanation:

The computation of the contribution margin ratio is shown below:-

Selling price per unit = $4,900,000 ÷ 4,025 units

= 1217.39

Contribution margin ratio = Contribution margin ÷ Selling price

= $280 ÷ 1217.39

= 23%

Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

6 0
3 years ago
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