Answer:
b. 13.9%
Explanation:
sales 7,000,000
variable cost <u> (3,000,000) </u>
contribution 4,000,000
fixed cost (1,500,000)
interest <u> (480,000) </u>
EBT 2,020,000
tax expense (707,000)
net income 1,313,000
contribution margin 4,000,000 / 7,000,000 = 4/7
if sales increase by 7%:
7,000,000 x 0.07 x 4/7 x (1- 0.35) = 182,000
income after increase in sales: 1,313,000 + 182,000 = 1,495,000
increase in earnings: 1,495,000 / 1,313,000 - 1 = 0.138613861 = 13.9%
This is because of the rampant advertising activities that can be done through social media and other platforms related to the internet and the global network. The world has become too small already because of the presence of technology in the form of internet connection. The need for advertising firms is no longer that high because with just a click of a button you can already create your own advertising material and reach as many people as you can. This is the reason why a lot of top global advertising firms have seen a lot of mergers in the recent years of advertising.
Answer:
Pre-tax book income $265,000
Less depreciation additional charge $14,500
Taxable income $250,500
Tax liability at 30% = $75,150
Answer:
$22,800
Explanation:
Calculation for the total amount of indirect manufacturing cost incurred
First step is to find the fixed manufacturing overhead portion
Fixed manufacturing overhead portion=$3.00 *5000 units
Fixed manufacturing overhead portion =$15,000
Second step is to calculate the indirect manufacturing cost if 6,000 units are produced using this formula
Indirect manufacturing cost =Fixed manufacturing overhead portion
+ Variable portion
Let plug in the formula
Indirect manufacturing cost=$15,000 + ($1.30*6,000 units)
Indirect manufacturing cost=$15,000+$7,800
Indirect manufacturing cost=$22,800
Therefore the total amount of indirect manufacturing cost incurred is closest to $22,800
the answer is d. discretionary changes in government spending and taxes
