Answer:
Zola's gross income is worked out under community property state;
Explanation:
community property state
Dividends ($1200/2) $600
Interest on certificate of deposit ($900/2) $450
Salary ($80,000/2) $40,000
Gross income $41,050
Under community law system, all the property is deemed to be community property and is held jointly by the spouses unless the property is acquired before marriage or inheritance or gift.
For federal tax purposes, each spouse is taxed one and half of the property belonging to community. Therefore Zola is taxed 50% for the incomes of her spouse as well including the interest on certificate of deposit.
Answer:
Break Even Point
In Units = 2,000 units
In value = $80,000
Explanation:
Break even Point = 
When we use contribution per unit, we get the break even point in units sales.
When we use the contribution margin as a percentage of sales we get break even sales in value.
Contribution per unit = $20
Contribution margin in percentage = $20/$40 = 50%
Therefore, Break even Point in units = 
Break even units = 2,000
Break Even Point in value = 
Sales to be made in value at break even = $80,000
Answer:
11.24%
Explanation:
Fisher equation:
(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected annual inflation)
1 + nominal interest rate = 1.03 x 1.08
--> Nominal interest rate = 11.24%
Answer:
Disposible income.
Marginal propensity to consume.
Disposible income, marginal propensity to consume.
The consumption will increase by $800
Explanation:
The consumption function shows the relationship between consumption spending and disposible income.
The slope of the consumption function is the marginal propensity to consume.
Changes in consumption can be predicted by multiplying the change in disposible income by the marginal propensity to consume.
Given: MPC = 0.80
Disposible income increases by $1,000
consumption increase = 0.80*$1000
= $800
Therefore, The consumption will increase by $800.
