All categories

3 years ago

EB7.

Business

1 answer:

LenaWriter [7]3 years ago

4 0

Answer:

What would be Deltaâ€™s desired pre-tax income?

It can be calculated as follow.

As after tax earning is 64% (100-36(tax rate))of of pretax earning, so

Post tax earning = 44,000/64% = $ 68,750

What would be break-even point in units to reach the income goal of $44,000 after taxes?

This can be calculated by dividing the sum of post tax earning and fixed cost with contribution per unit,

Break even = (68,750 + 15,250)/ (150-90) = 1400 units

What would be break-even point in sales dollars to reach the income goal of $44,000 after taxes?

Break even (in dollars) = sale price * Break even units

= 210,000 dollars

Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.

Sales $ 210,000

Variable cost ($ 126,000)

Gross profit $ 84,000

Fixed Cost ($ 15,250)

Profit before Tax $ 68,750

Tax expense ($ 24,750)

Profit After Tax $ 44,000

You might be interested in

When Casey was promoted to head librarian of a small branch library, she really enjoyed the autonomy she had to hire employees,

Solnce55 [7]

It is an example of an intrinsic reward.

<u>Explanation:</u>

The occurrence given above is a case of AN INTRINSIC REWARD. There are two types of remuneration, inborn and extraneous prize. An inborn prize is a sort of remuneration which is by and by picked up when one accomplishes a by and by set objective. An intrinsic reward is close to the individual who is occupied with a specific action.

For example, in the situation given over, the natural prize is the fulfillment and the satisfaction which Casey feels. An extraneous prize is a sort of remuneration that is given to one by a more significant position authority because of good execution.

8 0

3 years ago

krek1111 [17]

First, we need to find the gross margin.
Gross margin = net sales - cost of goods sold
Gross margin = $1,750,000 = $390,000
Gross margin = $1,360,000

Then, we need to find the net profit before tax.
Net profit before tax = gross margin - expenses
Net profit before tax = $1,360,000 = $960,000
Net profit before tax = $400,000

Net income after taxes = (total revenue - total expenses)/total revenue
Net income after taxes = (1,750,000 - 960,000)/(1,750,000)
Net income after taxes % = 45%

5 0

3 years ago

According to the textbook, the only way to know if your product or service is what people want is by ________. talking to them l

vlabodo [156]

The answer is by having to survey the people or the consumers. For this could serve as a basis and to be able to determine the wants of the people and the popular trends in which they will like and what they want, in helping to produce better products and service.

8 0

3 years ago

Read 2 more answers

Which one of the following is true about risk and return?A) Riskier assets will, on average, earn lower returns.B) The reward fo

ollegr [7]

Answer:

E) In general, the higher the expected return, the higher the risk.

Explanation:

In order to attract potential investors, investments that bear a higher risk must offer a higher expected return. This is known as the risk-return tradeoff principle. Abiding by that same logic, investments with lower associated risk tend to offer lower expected returns since they are a "safe bet".

Therefore, the answer is E) In general, the higher the expected return, the higher the risk.

3 0

2 years ago

If there are no readily available substitutes for a product, it will tend to have...

NARA [144]

Answer:

no value

Explanation:

8 0

2 years ago