Answer:
$114,320
Explanation:
The computation is shown below:
The margin of safety equals to
= (Expected sales units - break even sales units) × Selling price per unit
where,
expected sales units = 4,329 units
Break even sales units = 2,900 units
And, the selling price per units is $80 each
So, the margin of safety in dollars is
= (4,329 units - 2,900 units) × $80
= 1,429 units × $80
= $114,320
This is the answer but the same is not provided in the given options
Answer:
$44,928,000
Explanation:
The fact that 416,000 received a refund of $3,600 each means that the tax authority would lose the interest income that could have been generated on the total refund amount based on a 3% interest rate of return.
Lost annual income=number of people who got refund*average refund per person*interest rate of return
number of people who got refund=416000
average refund per person=$3,600
the interest rate of return=3%
Lost annual income=416,000*$3,600*3%
Lost annual income=$44,928,000
C. a negative duration on it's assets.
Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
<span>The functional distribution of income shows the distribution of income among factors of production and the personal distribution of income shows the distribution of income amonghouseholds.
The function distribution is attributed to the company performance, so it does look in to resources and the all levels of staff where as the personal distribution is associated with a single individual who is concerning towards his household.</span>