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3 years ago

Excise and Sales Tax Calculations

Business

1 answer:

Eva8 [605]3 years ago

6 0

Answer:

Explanation:

Sales for May = $750,000

Sales tax =5% (30%*750000) + 5%(65%*750000)

( 225000+487500)*5% =35,625

Excise tax = 10%(30%*750000)

=10%(225000)=22,500

Journal entry = Dr Sales tax payable - $35,625

Dr Excise tax payable - $22,500

Cr Cash - $58,125

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A company has break-even sales of $200,000. If the company expects sales of $500,000, the margin of safety i is________.

zhuklara [117]

Answer:

Margin of safety = $300000

Explanation:

The margin of safety is the amount or units in excess of the break even level of sales or units. It is the region beyond the break even point and represents the profit for the business. Any units in excess of the break even point represents the margin of safety.

The margin of safety for the given question with expected sales of $500000 and break even sales of $200000 can be calculated as follows,

Margin of safety = 500000 - 200000 = $300000

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3 years ago

Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.

Firlakuza [10]

Answer:

Lawnmowers= 45,726

Weed-trimmers= 114,314

Chainsaws= 68,589

Explanation:

Giving the following information:

Sales Mix - Unit Contribution Margin

Lawnmowers 20 % $34

Weed-trimmers 50 % $24

Chainsaws 30 % $37

Yard total has fixed cost of $6,836,000

Based on the weighted average sales participation and the unit contribution margin, we can calculate the weighted average contribution margin for the whole company. We need it to calculate the break-even point in units.

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Weighted average contribution margin= sales participation per product* unitary contribution margin

Weighted average contribution margin= (0.20*34) + (0.5*24) + (0.3*37)= 29.9

Break-even point (units)= 6,836,000/ 29.9= 228,629 units

<u>Now, we can calculate the required units for each product:</u>

Lawnmowers= 0.20*228,629= 45,726

Weed-trimmers= 0.50*228,629= 114,314

Chainsaws= 0.3*228,629= 68,589

4 0

4 years ago

An advertising agency that assists clients by both developing and placing advertisements may receive payment according to an inc

Bumek [7]

Answer:

The correct answer is letter "A": full-service agencies.

Explanation:

Full-service agencies are those in charge of handling all the advertisement campaign of a company from the planning until it is implemented. In most cases, firms hire these agencies to focus on their production process instead of the branding and promotional efforts for the goods manufactured. In some cases, the payment of these agencies can be set as a percentage of certain goals dealt with the institution.

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3 years ago

How did dr. Martin Luther King Jr and Malcolm X differ in their approaches to gain civil rights

Ludmilka [50]

Dr. Martin Luther King Jr wanted to gain their civil rights verbally and no violence. On the other hand Malcolm X wanted to gain their civil rights by physically fighting. But in the similarity of the two in the end they both had something in common. Which is they both wanted to gain civil rights.

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3 years ago

Elite Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:

zalisa [80]

Answer:

the cash payback period for both projects is 2 years

NPV for plant expansion = $304,707.24

NPV for Retail Store Expansion = $309,744.41

retail store expansion has the greater NPV

Explanation:

Here is the full question for question 2

. Because of the timing of the receipt of the net cash flows, the

plant expansion

retail store expansion

has the higher net present value

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Please check the attached image for a calculation of how the payback period was calculated.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

for Plant Expansion

Cash flow in year 0 = -900,000

Cash flow in year 1 = 450,000

Cash flow in year 2 = 450,000

Cash flow in year 3 = 340,000

Cash flow in year 4 = 280,000

Cash flow in year 5 = 180,000

I = 15%

NPV = $304,707.24

For retail store expansion

Cash flow in year 0 = -900,000

Cash flow in year 1 = 500,000

Cash flow in year 2 = 400,000

Cash flow in year 3 = 350,000

Cash flow in year 4 = 250,000

Cash flow in year 5 = 200,000

I = 15%

NPV = $309,744.41

retail store expansion has the greater NPV

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago