Answer:
it lowers the payout the company has to make.
Answer:
A) A firm in an oligopolistic market has to consider its own impact on price when making production decisions
Explanation:
A perfectly competitive market is a market with many firms selling identical product. There are free entry and free exist and the decision of a firm does not affect the price in the market as all firms are price takers. Therefore, each firm is independent under perfectly competitive market and production decisions of a firm in a perfectly competitive market does not affect the price in the market nor will it cause any reaction from other firms.
However, Oligopolistic market is a market where there are few firms which are 3 or more firms but not more than 20 firms selling identical or differentiated product.. Firms in oligopolistic market are interdependent which implies that the decision of one firm can affect price and this can cause reaction from other firms and then lead to a price war. A price war occurs when each firm continually reduces its own price in order to increase its market share which causes other firms to react reducing their own prices and this will make none of the firms to gain in the end. In order to avoid the price war, each firm in an oligopolistic market has to consider its own impact on price when making production decisions.
The formula is
A=p (1+r)^t
A future value 214800
P current value 36900
R rate of increases 0.06
T time?
We need to solve for t
T=log (A/p)÷log (1+r)
T=log(214,800÷36,900)÷log(1+0.06)
T=30 years
Answer:
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
- If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.
Explain why this amount is referred to as phantom profit.
- Phantom profit basically refers to the profit that the company could have made using a different accounting method.
Identify the impact of LIFO versus FIFO.
- LIFO increases COGS by $240, reducing gross profits by the same amount.
Explanation:
units price total
purchase 100 $6 $600
purchase 200 $7 $1,400
purchase 140 $8 $1,120
total 440 $3,120
ending inventory 180
using LIFO $1,160
using FIFO $1,400
COGS using LIFO = $3,120 - $1,160 = $1,960
COGS using FIFO = $3,120 - $1,400 = $1,720
If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.
Answer:
The answer is 44.84%
Explanation:
39% tax bracket takes back the advantage of the lower 15% and 25% tax rates.
The process will finish once the income that is taxable gets to $10 million.
Therefore, you can get the tax attributable to taxable income which ranges from $335,000 to $10 million by using all the rates in the above schedule or, more simply, by multiplying by 34%
208000*34% = 50000*15% + 25000*25% + 25000*34% + 108000*T%
70720 = 22250 +108000*T%
T=44.84%
