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xxMikexx [17]
3 years ago
8

Last year, Bad Tattoo Co. had additions to retained earnings of $4,780 on sales of $95,560. The company had costs of $75,720, di

vidends of $2,980, and interest expense of $2,040. If the tax rate was 34 percent, what the depreciation expense?
a. $6,439.
b. $13,285.
c. $7,390.
d. $7,760.
e. $6,042.
Business
1 answer:
fredd [130]3 years ago
8 0

Answer:

e. $6,042

Explanation:

Net income of Bad tattoo co. = Addition of retained earnings + Dividends

= $4,780 + $2,980

= $7,760

Income before tax of Bad tattoo Co = Net income / (1-tax rate)

= $7,760 / (1-34%)

= $7,760 / 0.66

= $11,758

But,

Income before tax = Sales - Costs

- Depreciation expense - Interest expense

$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040

$11,758 = $19,840 - Depreciation expense - $2,040

Depreciation expense = $19,840 - $11,758 - $2,040

Depreciation expense = $6,042

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C. zeppo

Explanation:

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3 years ago
A sofa manufacturer can produce 10 sofas for $2,500 and 12 sofas for $2,760. What is the difference between the average cost per
strojnjashka [21]

Answer:100

Explanation:

The following information can be gotten from the question:

Cost for 10 sofas = $2500

Cost for 12 sofas = $2760.

Average Cost = Total Cost/Quantity

2500 / 10 = $250 and

$2760 / 12 = $230

The average cost for 12 sofas will be $230

Marginal cost is the change in total cost divided by the change in quantity. This will be:

= ( 2760 - 2500 )/( 12 - 10 )

= 260/2

= 130

The difference between the average cost per sofa for 12 sofas and the marginal cost of the 12th sofa will be:

=230 - 130

= 100

8 0
3 years ago
Karen makes $10 per hour and is paid time and
lozanna [386]

Answer:

B.$520

Explanation:

52 x 10

=520

5 0
3 years ago
Suppose that a planet fitness studio has fixed expenses of $7500 per month and variable expenses of $4.99 per member per month.
natka813 [3]
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6 0
3 years ago
According to the _____________, many African Americans live in areas where there has been a reduction in work for low-skilled wo
enyata [817]

According to the <u>b. skills mismatch hypothesis</u>, many African Americans live in areas where there has been a reduction in work for low-skilled workers.

<h3>What is the skills mismatch hypothesis?</h3>

The skills mismatch hypothesis is an attempt to explain the reduction in work for low-skilled workers, especially African Americans.

The skills mismatch hypothesis argues that skill demands in urban labor markets increase over time.

Unfortunately, African Americans do not have the job skills and educational attainments, unlike other population groups, thereby causing a skills mismatch.

<h3>Answer Options:</h3>

a. residential segregation theory

b. skills mismatch hypothesis

c. deindustrialization perspective

d. "wage of whiteness" perspective

Thus, according to the <u>b. skills mismatch hypothesis</u>, many African Americans live in areas where there has been a reduction in work for low-skilled workers, and African-American men in particular often do not have the skills required to secure work in the current economy.

Learn more about the skills mismatch hypothesis at brainly.com/question/7493146

#SPJ1

8 0
2 years ago
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