Knowledge , pride and wisdom
Answer:
Income will be higher by $16 per unit
Explanation:
As per the data given in the question,
Direct material = $38
Direct labor = $50
Overhead = $21
Total variable cost = $38 + $50 + $21
= $109
Cost of supply = $125
Income increased per unit = cost of supply - total variable cost
=$125 - $109
= $16
Because the cost of inhouse is lower therefore net income will be more by $16 per unit
Answer:
$9,555
Explanation:
As for the trend provided, the year 3 Sales will also be $40,000
Cost of goods sold will be $25,000
gross margin = $15,000
Operating expenses are decreasing with time by 
Thus, it will decrease with the same trend = $7,000 - 22.22% = $5,445
Rounded off
Therefore, net income = $15,000 - $5,445 = $9,555
Note: Gain on sale of land is one time event and not permanent, thus it will not be considered as part of trend.
Answer:
D : George will have to pay $7,500, which is the 50% tax on the amount that he should have taken for his required minimum distribution.
Explanation:
Currently, Required Minimum Distributions (RMDs) have been suspended for the entire 2020 due to CARES Act. But under normal circumstances, Roger would be penalized and 50% of the RMD not retired would be withheld by the IRS. That is why people generally withdraw the RMDs even if they do not need them.