<span>The laffer curve makes the point that cutting a very high marginal tax rate can raise the tax base enough so that tax revenues actually rise. The Laffer Curve is a theory that was developed by Arthur Laffer. The theory explains the relationship between tax rates and how much tax revue the government creates. </span>
Answer:
Explanation:
REVENUE JOURNAL
DATE. DES. NO. DR. CR
3 Oct. Palace 622. $2,890
8 Oct Sunny. 623. $1,940
18 Oct Amex. 624. $2,970
28 Oct Wayfarer 625. $900
30 Oct. Rogers. . $120
Total revenue. $8,820
Less pmt in the month $3,010
Amount receivable. $5,810
Account receivable
Date. Description. Dr. Cr
1 Oct. Bal b/f. $2,510
3 Oct. Palace $2,890
5 Oct. Champion. $1,060
8 Oct Sunny. $1,940
12 Oct. Wayfare. $1,450
18 Oct Amex. $2,970
23 Oct. Palace. $2,890
28 Oct Wayfarer $900
Balance c/d. $5,810
Answer: a. both finished products and intermediate goods
Explanation:
Both finished goods and intermediate goods can either be imported or exported. If a company that is selling goods at the merchandising level sources the goods from outside, they would be importing a finished good and the company that sent it to them would be exporting same.
Sometimes however, producers would import an intermediate good to help them finish production or to even develop the good further for instance Apple buying screens for phones from Korea. Apple would be importing a intermediate good in this scenario and Korea would be exporting it.
Answer:
a. $10
b. $8 per unit
c. 44.44%
Explanation:
The computation is shown below:-
First we need to find out the Variable cost and contribution margin
Sales $810,000
(45,000 × 18)
Less: Variable cost $450,000
Contribution margin $360,000
Less: Fixed cost $62,000
Operating income $298,000
a. Variable cost per unit
Variable cost per unit = Total variable cost ÷ Total number of units
= $450,000 ÷ 45,000
= $10
b. . Unit contribution margin
= (Selling price per unit - Variable cost per unit)
= $18 - $10
= $8 per unit
c. Contribution margin ratio
= (Selling price per unit - Variable cost per unit) ÷ Selling price per unit × 100
= ($18 - $10) ÷ $18
= 44.44%
