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Alik [6]
3 years ago
12

Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85. How much additional tax will the fir

m owe if its marginal tax rate is 21%?
Business
2 answers:
natka813 [3]3 years ago
8 0

Answer:

Additional tax the firm will owe: $3.15

Explanation:

Marginal tax rate is calculated by following formula:

Marginal tax rate = Change in taxes paid/Change in income

Change in taxes paid = Marginal tax rate x Change in income

The firm increases its revenue by $100 while increasing its cost of goods sold by $85.

Change in income = $100 - $85 = $15

Additional tax the firm will owe = $15 x 21% = $3.15

Kitty [74]3 years ago
8 0

Answer:

$3.15

Explanation:

Marginal income is the difference between the marginal revenue and the marginal cost.

Marginal revenue = $100

Marginal cost = $85

Marginal taxable income = $100 - $85

=$15

If the marginal tax rate is 21%, additional tax owed

= 21% × $15

=$3.15

The marginal tax owed as a result of the increase in revenue and cost is $3.15.

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The nature of the tax system means that there is usually a trade-off between ___ and ___.
IgorC [24]

Answer:

<u>equity and efficiency</u>

Explanation:

Under the tax system there is no tax on losses. And also the losses can be carried forward and set off to profits in future.

When profits are earned the taxes are paid. After that the remaining profit is either distributed to equity or retained for future purposes.

The more efficiently the company works, higher will be the profit and higher will be the taxes.

As profit is for equity, and from that share the amount is given to tax authorities, which is some part of income, share of equity to tax.

Though it does not provide for right in company, but it is legal to pay the tax.

That is the price you pay for increasing or decreasing efficiency, in the form of income available for equity.

5 0
3 years ago
Outsourcing and telecommuting are examples of which are work place trend?
photoshop1234 [79]
I believe the correct answer from the choices listed above is the last option. Outsourcing and telecommuting are examples of technology workplace trend. Companies are utilizing the available technology they have in order to have lower and more effective costs. Hope this answers the question.

6 0
3 years ago
A bond with duration of 10 years has yield to maturity of 10%. this bond's volatility is:
asambeis [7]
Given: 
Duration = 10 years
 Yield to maturity = 10%  
To find: Bond volatility. 
 Solution: 
 Volatility (in percentage) = Duration / (1+yield) 
 Now putting values in the formula,
 10 / (1+10%) 
 10/ (1+10/100)
 10/(1+0.1)
 10/1.1 = 9.09%
  So, bond volatility is 9.09%.

4 0
3 years ago
If given an option between a sure gain of ten dollars or a twenty percent chance of gaining fifty dollars and a eighty percent c
mel-nik [20]

Answer:

tt

Explanation:

6 0
3 years ago
Which of the following is true about the interest rate of a Direct PLUS Loan?
SCORPION-xisa [38]

Answer:

Which of the following is true about the interest rate of a Direct PLUS Loan?

The interest rate is fixed.​

Explanation:

The interest rate is fixed which makes it to be an interest rate of a DIRECT PLUS loan

3 0
4 years ago
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