Answer:
The right answer is option (C).
Explanation:
Earned income can be defined as the income of a person which he earns by working and efforts.
Hence according to the question, the most appropriate answer is option (C) because interest earned from a bank account is not the result of any personal efforts and hence it is not considered as earned income for EIC.
While the other options are wrong because of the following reasons:
- Wages can be defined as the income a person gets after working for some company, hence it is considered as the earned income.
- Tips are also an outcome of personal efforts to make clients happy and hence it also considered as the earned income.
- Self-employed income can be defined as the income a person gets for his work as a freelancer and hence it also considered as the earned income.
Flyer would have to cut $2 per unit in order to meet the new target cost.
<h3>What is target cost?</h3>
The target cost of a product is the expected selling price of the product minus the desired profit from selling
First, we need to get the target cost
= Target Selling price per unit - Target profit per unit
= $48 - ($48 x 0.125)
= $48 - $6
= $42
Then, Flyer have to cut costs per unit
= Cost for product - Target cost
= $44 - $42
= $2
Hence, Flyer would have to cut $2 per unit in order to meet the new target cost.
Learn more about target costs here: brainly.com/question/15237816
#SPJ1
Answer:
$723,000
Explanation:
Calculation to determine what was Jennings reported net income in 2020
Using this formula
2020 Net income=(2019 Retained earnings-2020 Retained earnings)+ Total Dividend
Let Plug in the formula
2020 Net income=($2,681,000-$2,308,000)+$350,000
2020 Net income=$373,000+$350,000
2020 Net income=$723,000
Therefore Jennings reported net income in 2020 is $723,000
Answer: The price elasticity of demand for good A is 0.67, and an increase in price will result in a increase in total revenue for good A
Explanation:
The following can be deduced form the question:
P1 = $50
P2 = $70
Q1 = 500 units
Q2 = 400 units
Percentage change in quantity = [Q2 - Q1 / (Q2 + Q1) ÷ 2 ] × 100
Percentage change in price = [P2 - P1 / (P2 + P1) ÷ 2 ] × 100
% change in quantity = (400 - 500)/(400 + 500)/2 × 100
= -100/450 × 100
= -22.22%
% change on price = (70 - 50)/(70 + 50)/2 × 100
= 20/60 × 100
= 33
Price elasticity of demand = % change in quantity / % change on price
= -22.22 / 33
= -0.67
This means that a 1% change in price will lead to a 0.67% change in quantity demanded. As there was a price change, there'll be a little change in quantity demanded because demand is inelastic. Thereby, he increase in price will lead to an increase in the total revenue.
Therefore, the price elasticity of demand for good A is 0.67, and an increase in price will result in an increase in total revenue for good A
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
