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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

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Praxis Corp. forecasts the following income statement for the next year:

Annette [7]

Answer: a. 1.42

b) 2.74

c) 3.89

Explanation:

a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.

It is calculated with the formula,

= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)

= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)

= 1.42

b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.

The formula is,

=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax

= 301,000/110,000

= 2.74

c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.

It is calculated by multiplying DOL and DFL.

= 1.42 * 2.74

= 3.89

Should you need any clarification just hit that comment button. Cheers.

3 0

3 years ago

Which is the shortest and simplest tax form?

AfilCa [17]

Filling out a tax form is about as much fun as owing taxes to Uncle Sam. The complexity of the task intensifies as your tax life becomes more complicated.

That's why you should use the simplest tax return form you can, especially if you're still filling out your forms by hand.

But choose carefully. There are three personal income tax forms -- 1040, 1040A and 1040EZ -- with each designed to get the appropriate amount of your money to the IRS. Differences in the forms, however, could cost you if you're not paying attention.

The EZ is the shortest and simplest form, Form 1040A is a bit more complex and the long Form 1040 is the most detailed and potentially difficult. But even if your tax life is simple and straightforward, it might be worthwhile to investigate the other two forms. Why? Generally, the longer the form, the more opportunities for tax breaks.

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2 years ago

A producer has indicated to a potential client that the proposed life insurance policy is covered by the Massachusetts Life and

Ksivusya [100]

There are lot of people involved in production. The action taken by the producer is prohibited by law.

<h3>Which actions is considered to be an unfair trade practice?</h3>

Unfair business practices are said to be any kind of misrepresentation, untrue advertising or depiction of a good or service, noncompliance with the terms of manufacturing standards, etc.

The action of the producer is prohibited because it is not the right thing to do and also not backed up by law.

Learn more about Producers from

brainly.com/question/8806324

5 0

2 years ago

Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matri

erica [24]

Answer: Please refer to Explanation

Explanation:

The Dominant Strategy in a game is the strategy that a player will choose that will provide them with the highest payoff regardless of what the other player does.

In the above, the dominant strategy will be for RAPHAEL to choose LEFT.

By choosing left Raphael makes a payoff of 4 if Susan picks Left as well and a Payoff of 6 if Sudan picks Right. This is better than him picking Right and he will get a Payoff of 3 if Susan chooses Right as well.

The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.

The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.

This is because Raphael will pick Left as it maximises their payoff and Susan will then pick a strategy that gives her the highest payoff based on Raphael's decision which is to go RIGHT.

7 0

3 years ago

James purchased five bonds of face value of $1,000 that paid 5 percent annual interest rate. the total annual interest income of

oksian1 [2.3K]

250 dollars without compound intrest

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3 years ago