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nirvana33 [79]
3 years ago
13

Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as he lives. Based on IRS tabl

es, Geoff's life expectancy is 240 months. How much of the first $100 payment will George include in his gross income?
A. $100
B. $80
C. $48
D. $20
E. None of the Above
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

B. $80

Explanation:

The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income

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If a company decreases its selling price by $4 per unit, due to a decrease in its direct material cost of $4 per unit, the break
MariettaO [177]

There would no change in the break-even point .

What is breakeven point?

It is the point at which the firm makes zero profit, I mean the number of units the firm needs to sell in order to cover all costs, such that revenue is the same as total costs.

Initially, breakeven point is the fixed costs divided by the contribution margin per unit(i.e. selling price minus variable cost per unit)

Let assume fixed cost is $100,000

Selling price=$40

variable cost=$20

Initial breakeven point=$100,000/($40-$20)

Initial breakeven point=5,000 units

Now selling price and variable cost would reduce by $4 each

breakeven point now=$100,000/($36-$16)

breakeven point now=5,000 units

Overall, the breakeven point would remain the same before the reduction in selling price and variable cost as well as after the reduction.

Read more on breakeven point on:brainly.com/question/9212451

#SPJ1

7 0
2 years ago
Jake is a sales representative for General Mills. Each week he uploads his plans for visiting clients out in the field to a rout
Darina [25.2K]

Answer: Minimizing non selling time

Explanation:

In personal selling the sales representative have to visit client to client, door to door and interact with customers with a good sales pitch. This requires a lot of time and resources. If managed effectively the sales rep. can save time and reach maximum number of customers in a short period of time.

7 0
3 years ago
Hidalgo is primarily liable on a promissory note. Because of this, he: a. is required to pay, unless he has a valid defense to p
MatroZZZ [7]

Answer:

The correct option is A

Explanation:

Promissory note is the kind or type of note which is considered to be a financial instrument,and it comprise of a written promise made by one party  to another party in order to pay a specific or particular amount or sum of money or amount, either on a particular or a future date or on demand by the party.

This note involve the terms that are pertaining to the indebtedness like the maturity date, issuer signature, principal amount, place of issuance and the interest rate.

Therefore, Hidalgo is liable on the promissory note and because of this, he is required to pay until he has a valid and a genuine defense to payment.

4 0
3 years ago
You run a nail salon. Fixed monthly cost is $5,518.00 for rent and utilities, $6,014.00 is spent in salaries and $1,613.00 in in
Liono4ka [1.6K]

Answer:

With 266 costumers it is indifferent where the nail salon is located.

Explanation:

Giving the following information:

Fixed monthly cost is $5,518.00 for rent and utilities

$6,014.00 is spent on salaries.

$1,613.00 in insurance.

Every customer requires approximately $4.00 in supplies.

You charge $120.00.

New location:

Fixed costs in rent and utilities= $11,401

Salaries= $6,716.00

Insurance to $2,203.00 per month.

The cost of supplies will increase to $7.00 per service.

Selling price= $150.00 per service.

Gross profit old location= Contribution margin*Q - fixed costs

Gross profit old location= (120-4)*Q - 13145

Gross profit new location=Contribution margin*Q - fixed costs

Gross profit new location= (150-7)*Q - 20320

116*Q-13145= 143*Q - 20320

7175=27*Q

Q=265.74074 = 266costumers

8 0
3 years ago
Division A makes a part with the following characteristics: Production capacity in units 34,000 units Selling price to outside c
azamat

Answer:

Division A

If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be:

worse off by $30,000 each period.

Explanation:

a) Data and Calculations:

Production capacity of Division A = 34,000

Selling price per unit to outside customers = $21

Variable cost per unit = $13

Total fixed costs = $105,800

Order from Division B = 10,000

Price that Division B purchases from outside supplier = $18

Selling to Division B instead of selling to outside customers will result in a loss of $3 ($21 - $18) per unit

The total loss = $30,000 ($3 * 10,000)

7 0
3 years ago
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