Answer:
Investment, you buy a property to rent in hope to make your money back over time.
Explanation:
Answer:
Net Increase in profit is $27,000
Explanation:
* The data was missing in this question, a similar question is attached with the answer, and answer is made accordingly. Please find it.
Sales ( $350,000 x 120% ) = $420,000
- Variable cost ( 40% ) = $168,000
- Traceable fixed cost( 175000+15000) = <u>$190,000</u>
Net Profit = $62,000
Net Increase in Net Income = $62,000 - ( 350,000 - (350,000 x 40%) - 175,000 ) = 27,000
Pharrell, Inc., has sales of $586,000, costs of $272,000, depreciation expense of $70,500, interest expense of $37,500, and a ta
aleksklad [387]
Answer: Net income for this firm = $123,600
Explanation:
Given that,
Sales = $586,000
Costs = $272,000
Depreciation expense = $70,500
Interest expense = $37,500
Tax rate = 40 percent
Pre tax income = Sales - costs - Depreciation expense - Interest expense
= $586,000 - $272,000 - $70,500 - $37,500
= $206,000
After tax income = Pre tax income × (1 - Tax rate)
= $206,000 × (1 - 0.4)
= $206,000 × 0.6
= $123,600
Therefore,
Net income for this firm = $123,600