This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000. Last year, their total t
ax liability was $170,000. They estimate that their tax withholding from their employers will be $175,000. a. Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty? Yes No b. By how much, if any, must Paula and Simon increase their withholding and/or estimated tax payments for the year to avoid underpayment penalties?
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<h3>Hello there!</h3>
Your question asks how many muffins the Muffin House needs to sell in order to breakeven
<h3>Answer: 700 Muffins</h3>In order to find the answer to your question, we first need to gather important information from the question.
Important Information:
- Selling price/ per muffin = $15
- Variable costs (cost to make)/ per muffin = $9
- Total fixed cost = $4,200
With the information above, we can find the answer to the question.
The Muffin House spends $9 to make a muffin, but sells it for $15. So the Margin is $6 (profit).
We would only make profit from the Margin price, so we need to get the Margin price to $4,200.This means we would need to divide 4200 by 6 to get our answer. Since they want to breakeven with the fixed cost, they need to sell as much muffins for the Margin to add up to $4,200 at the end to breakeven.
When you're done solving, you should get 700.
This means that The Muffin House must sell 700 muffins in order to break even.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>Answer: Option B
Explanation: Under the straight line method of depreciation, the value of the asset is divided equally to its useful life. It is computed as follows :-
NOW,
A. Straight line method as per the above equation provides for equal productivity.
B. Dividing the usefulness equally results in ignorance of change in the rate of asset use as the asset may be used less initially but more in later years.
C. As the expense from the method remains same and the actual value of the asset diminishes it results in higher rate of return.
D. Decreasing charge method charge depreciation on written down value whereas straight line charges t initial cost thus it gives higher write offs than decreasing charge.