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Furkat [3]
3 years ago
10

Next year, Celebrity wishes to increase the unit selling price to $110. Shipping will change to 2.5% of sales. Cost of goods sol

d per unit, fixed costs, and sales volume will remain the same. How will these changes affect contribution margin and net income?

Business
1 answer:
RSB [31]3 years ago
8 0

Answer:

net income increased by $1,537.50

Explanation:

Obviously, the original income statement is missing, so I looked for a similar question:

sales revenue                                 $16,500

COGS                                              <u>($9,300)</u>

Gross profit                                      $7,200

Operating exp.:

  • Administrative $950
  • Depreciation $1,300
  • Shipping $412.50             <u>($2,662.50)</u>

Net income                                 $4,537.50

net income increased by $4,537.50 - $3,000 = $1,537.50

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Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable
Evgen [1.6K]

Answer:

Explanation:

Given that :

Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000.

Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation, and

In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.

The objective is to prepare a memo for the tax research file describing the tax consequences of the stock sale.

From the tax research file:

The gain on the sale of the 2,000 shares is calculated by the difference from the sales price and the shares sold.

I.e $24000 - $18000 = $6000

The tax rate on the $2000 = Purchase price of the shares/ (Original shares bought + new shares)

The tax rate on the 2000 shares = $24000/($10000+$2000)

The tax rate on the 2000 shares=  $24000/$12000

The tax rate on the 2000 shares=  $2 / shares

The Gain in the share = selling price - tax basis in the 2,000 new shares

The Gain in the share =  $18000 - $4000

The Gain in the share = $14000

∴

This is the long capital gain i.e  $14000

The memo in summary goes thus:

The amount of $24000 is being paid by you for 10000 shares of stock in Grebe Corporation in which a stock dividend of 2000 was received. However, the share is sold for $18000, the tax basis is deduced by dividing $24000 purchasing price by $12000(original price + new shares price) which resulted into a $2/ shares.  The $14,000 gain on the sale is a long-term capital gain. The gain on the sale is long term because the original Grebe stock has been held for more than one year.

5 0
3 years ago
Montana company was authorized to issue 125,000 shares of common stock. the company had issued 54,000 shares of stock when it pu
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Potential GDP refers to the level of ___________ Select one: a. Nominal GDP in the long run. b. Nominal GDP in the short run. c.
Aloiza [94]

Answer:

c. Real GDP in long run

Explanation:

Potential GDP refers to the level of real GDP in long run.

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3 years ago
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The slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'steepe
Alex17521 [72]

The correct answer is false.

It is false that the slope of the investment demand function indicates how sensitive investment is to changes in real interest rates. The 'steeper' the investment demand function, the less sensitive investment is to changes in the real rate of interest, all else constant.

We can say that the downward slope is the consequence of several reasons. For instance, the concept that money, its nominal value, is fixed. However, the real value of money depends on the level of prices. So the demand for money is related to the demand for it. The interest rate falls when the price level falls.

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Which of these is NOT a safe skill to employ in the presence of road workers?
QveST [7]

Answer:

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Explanation:

The answer choices for this question are:

  • A. Keep alert and watch out for construction barrels or cones
  • B. Slow down even if you don't think you'll hit a road worker
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Since the conditions of the road are not the best, you should drive below the posted speed of limit.

The only presence of workers on the road represent a risk for them and for you.

The number of lanes are reduced, the road could present potholes, dirt, stones, or even some substances that make the pavement slippery. You could not have good visibility.

All those risks make that you have to be extremely careful, reduce your speed, lower than than the posted speed limit.

Thus, you should:

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  • B. Slow down even if you don't think you'll hit a road worker
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