Repair shops often use a deceptive practice known as bait and switch. a. True b. False

Speciality Steel Inc. will manufacture and sell 250,000 units of their product next year. Fixed costs will be $250,000. Variable

Otrada [13]

Based on the amount to be sold and the intended level of earnings, the selling price per unit should be $3.40

The Contribution margin needed is:

= Fixed cost + Required earnings

= 250,000 + 260,000

= $510,000

To get to this amount, the sales should be:

Contribution margin = Sales x ( Selling price - Variable cost)

510,000 = 250,000 × 0.6x

510,000 = 150,000x

x = 510,000 / 150,000

x = $3.40

In conclusion, the selling price is $3.40

Find out more about intended selling price/ quantity at brainly.com/question/25638811.

6 0

3 years ago

You can borrow and lend at the interest rates of 7.00% in the US and 5.00% in Canada. Based on Interest Rate Parity, the forward

LUCKY_DIMON [66]

Answer:

1.90%

Explanation:

Note that that CAD exchange rate would be in terms of how many US dollars can be exchanged for 1 CAD, which means that the formula for forward premium would be stated in terms of US dollars, I mean the US$ as the numerator and CAD's interest rate would be the denominator

the forward premium for CAD=((1+US interest rate)/(1+Canada interest rate))-1

the forward premium for CAD=((1+7%)/(1+5%))-1

the forward premium for CAD=1.90%

7 0

3 years ago

Most franchise experts recommend that the FDD be examined carefully by

VashaNatasha [74]

The correct answer for this question is:
Most franchise experts recommend that the FDD be examined carefully by "(B) a franchise attorney and an accountant." Franchise Disclosure Document or FDD is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure price.

8 0

4 years ago

In a certain jurisdiction caroline, who is earning $42,200, currently pays a flat percentage of 25% income tax. The tax authorit

NISA [10]

The amount of tax paid less by Caroline as per the new taxation policies will be $950 over her annual salary of $42,200 after the taxes are applied assuming deductions being made.

The calculation of tax saved by Caroline will be done on the basis of comparing the taxation rates of both the policies after taking the changes into account.

<h3>Calculation of tax savings</h3>

The formula for calculation of tax will be done as follows when the taxes are charged on flat basis under the old policy,

$\rm Income\ Tax= Salary\ x\ Rate\ of\ Taxation\\\\\rm Income\ Tax= 42200\ x\ {\dfrac{25}{100}\\\\\\\\\\\\\\rm Income\ Tax= \$10550$

The taxation for the first $20000 as per the new policy will be

$\rm Income\ Tax\ Threshold= 20000\ x\ \dfrac{15}{100}\\\\\rm Income\ Tax= \$3000$

Calculating further taxation,

$\rm Income\ Tax= 22200\ x\ \dfrac{30}{100}\\\\\rm Income\ Tax= \$6600$

So, total taxation as per the new policy will be $9600. Now comparing the taxation of old scheme with new scheme, we get,

$\rm Income\ Tax\ Savings= Old\ Taxation - New\ Taxation\\\\\rm Income\ Tax\ Savings=10550-9600\\\\\rm Income\ Tax\ Savings=950$

So, the total taxes saved are $950 when the taxation rate changes.

Hence, the correct statement is that tax savings of $950 is possible when the authorities change the taxation rates to such slab rates by Caroline.

Learn more about tax savings here:

brainly.com/question/2396701

6 0

3 years ago

For the following purchasing and sales transactions, prepare the appropriate journal entry assuming a perpetual inventory system

fredd [130]

Answer:

Cougar Corp.

Journal Entries

1. Jan. 1:

Debit Inventory $6,500

Credit Accounts payable $6,500

To record the purchase of inventory on account, credit terms 1/10, net 30.

2. Jan. 2:

Debit Freight-in $110

Credit Cash $110

To record the freight for January 1 purchase.

3. Jan. 5:

Debit Accounts receivable $3,700

Credit Sales Revenue $3,700

To record the sale of goods on account, credit terms, 2/15, net 30.

Debit Cost of Goods Sold $2,600

Credit Inventory $2,600

To record the cost of goods sold.

4. Jan. 6:

Debit Accounts Payable $950

Credit Inventory $950

To record the return of goods on account.

5. Jan. 7:

Debit Freight-out $210

Credit Cash $210

To record the payment for freight for goods sold.

6. Jan. 9:

Debit Accounts Payable $5,550

Credit Cash $5,494

Credit Cash Discounts $56

To record the payment on account.

7. Jan. 10:

Debit Cash $3,626

Debit Cash Discounts $74

Credit Accounts Receivable $3,700

To record the receipt of cash on account.

Explanation:

a) Data and Analysis:

1. Jan 1: Inventory $6,500 Accounts Payable $6,500

2. Jan. 2: Freight-in $110 Cash $110

3. Jan. 5: Accounts Receivable $3,700 Sales Revenue $3,700

4. Jan.6: Accounts payable $950 Inventory $950

5. Jan. 7: Freight-out $210 Cash $210

6. Jan. 9: Accounts Payable $5,550 Cash $5,494 Cash Discounts $56

7. Jan. 10: Cash $3,626 Cash Discounts $74 Accounts Receivable $3,700

5 0

3 years ago