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iren [92.7K]
3 years ago
5

Consider the following income statement for Kroger Inc. (all figures in $ Millions):

Business
1 answer:
Darina [25.2K]3 years ago
7 0

Answer:

D) $179 million

Explanation:

The computation of the interest tax shield for the year 2006 is shown below:

= Interest expense in the year 2006 × tax rate

= $510 million × 35%

= $178.50 million

Simply we multiply the interest expense with the tax rate for the particular year so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

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Victor is the recipient of $1 million from a lawsuit. Victor decides to use the money to purchase a small business in Florida. H
ryzh [129]

Answer:

Economic profit = -$25,000    option c

Opportunity cost = $175,000  option d

Accounting profit to allow for zero economic profit = $175,000 Option c

Explanation:

<em>Economic profit is the difference between revenue and implicit cost. Implicit cost is the sum of out-of-pocket accounting cost and opportunity cost.</em>

<em>opportunity csot is the value of the benefit sacrificed in favour of a decision.</em>

Economic profit = Accounting profit - opportunity cost

Opportunity cost for victor includes

1. The $100,000 per year which he would have earned had he invested the  money in a bond

2. The annual salary of $75000 he forfeited

Total opportunity cost = 100,000 + 75,000= $175,000

Economic profit = 150,000 -175,000 = -$25,000

To attain an economic profit of zero , the accounting profit ought to be the same at the opprotunity cost of $175,000

Economic profit = -$25,000    option c

Opportunity cost = $175,000  option d

Accounting profit to allow for zero economic profit = $175,000 Option c

7 0
3 years ago
Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customer
Juliette [100K]

Answer:

Explanation:

Liability of Petri:

On all the purchases, if payment is made within 30days from delivery, Petri gave the authority of a 5% discount to Adam. Upon extension of credit to customers,  no terms were given to Adam.

In the case under consideration, Adam explicitly gave a false representation of his authority to get more sales on his account and thus, Petri is NOT accountable to John on his terms with Adam.

Liability of John:

Being a customer to Petri, John has to discover the detailed terms on discount and other payment terms with Petri when he called Petri. John is also accountable to make clarifications whether Adam has the authority to give a 10% discount and making payment in three installments.

In the case under consideration, John has failed to find the exact details on whether Adam has the authority to give a 10% discount. Thus, he is accountable to make the payment of $9500 in 30days.

6 0
3 years ago
What is an insurance premium?
Scilla [17]

Answer:

Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.

Explanation:

a

5 0
3 years ago
What term can be used to describe the situation where your fixed and variable expenses are higher than your net income.(1 point)
Pepsi [2]

The term that describes the situation where <em>fixed and variable </em><em>expenses</em><em> are higher than</em> net income is <em>D. dissaving.</em>

Dissaving happens when an individual is spending from either previous savings or borrowing to fund current expenses.

Dissaving is commoner with retirees than those currently employed. But it can also happen to currently-employed persons, whose expenses are more than their incomes. They should find strategies to stop the negative saving. Otherwise, their debts may be overbearing in future.

Thus, dissaving means negative saving or <em>spending more than income.</em>

Learn more: brainly.com/question/13954775

8 0
2 years ago
The Work Breakdown Structure (WBS) is normally developed by listing deliverables - major deliverables first and then progressive
AURORKA [14]

Answer:

The correct answer is True.

Explanation:

The steps to follow to create a work breakdown structure are as follows:

1. Organize a meeting and share with the main stakeholders: team members are one of the most valuable assets in the process of creating the work breakdown structure. They have the knowledge, experience and creativity necessary to define each deliverable reaching the most specific details.

2. Complete the definition of all project deliverables: it is about going one step beyond the level reached in the planning and 100% complete the information on all project deliverables, including internal and external, associating each one with its estimated completion time.

3. Break down each deliverable into smaller, more manageable parts: it is about achieving a realistic level of work planning by the project manager, which ensures that, without interfering with the total estimated project deadline and the overall plan, it can be completed by the work teams. It is about determining work packages. These units constitute the lowest level of the EDT and are pieces of work that are specifically assigned to a person or a team of people to be completed, under the supervision of the Project Director. It is recommended that they focus on a single point of responsibility. The work packages will be used later to define the activities and tasks in which the project is divided.

4. Review the results obtained: with the stakeholders, both at the time of finalizing the elaboration of the work breakdown structure, and when modifications or updates are included, if applicable. It is essential to avoid overlaps.

7 0
3 years ago
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