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baherus [9]
3 years ago
12

Michael operates his health food store as a sole proprietorship out of a building he owns. Based on the following information re

garding Year 6, compute his net self-employment income (for SE tax purposes) for Year 6.
Gross receipts $100,000
Cost of Goods Sold 49,000
Utilities 6,000
Real estate taxes 1,000
Gain on sale of business truck 2,000
Depreciation expense 5,000
Section 179 expense 1,000
Mortgage interest on building 7,000
Contributions to Keogh retirement plan 2,000
Net operating loss (NOL) from Year 5 10,000

a. $24,000
b. $16,000
c. $31,000
d. $14,000
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

c. $31000

Explanation:

Net self-employment income are gross income gotten from a trade or business, less allowable deductions attributable to the trade or business. When calculating self employment income, capital gains and losses, contributions for retirement, net operating losses are not considered.

Given that:

Gross receipts                                           $100,000

Cost of goods sold                                    $49,000

Utilities                                                        $6,000

Real estate taxes                                        $1,000

Depreciation expense                               $5,000

Sec. 179 expense                                       $1,000

Mortgage interest                                       $7,000

Net self-employment income = Gross receipts  - Cost of goods sold  - Utilities - Real estate taxes - Depreciation expense - Sec 179 expense - Mort-age interest

Therefore, Net self-employment income = $100000 - $49000 - $6000 - $1000 - $5000 - $1000 - $7000 = $31000

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Answer:

Decider.

Explanation:

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In Business management, the buying center comprises of a group of people or department within a specific organization that make business purchase decisions. These group of people are found in different parts of the organization, such as accounting, finance, procurement, and senior management. The buying center is made up of five (5) key groups, these are the buyers, gatekeepers, users, influencers, and deciders.

The decider in a buying center are generally responsible for choosing the right products to be purchased and have the final say (decision) with regards to a purchase order or a refusal.

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Assume you are the new Product Manager in our Amazon Prime business and are in charge of Pricing. The VP would like to lower the
vaieri [72.5K]

Answer:

Provided in Explanation

Explanation:

This is a very general question however I’ll try to answer it to the best of my knowledge.

If I use my own assumptions then these will be the Projections:

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Demand @ $79.99 1000 Demand @ $69.99 1200

   

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The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.

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Firms do create goods. Categories of manufacturing costs include direct labor, direct materials and manufacturing overhead.

<h3>What are manufacturing costs?</h3>

Manufacturing costs is grouped into materials, labor, and overhead. They are kinds of  direct costs.

Manufacturing cost is known to be the amount of costs of all resources taken into the process of creating a product. The manufacturing cost is grouped into three categories called: direct materials cost, direct labor cost and manufacturing overhead.

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tekilochka [14]

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