Answer: Reciprocal Interdependence.
Explanation:
Reciprocal Interdependence is a working situation in which the output of a department of an organization forms the direct input used by another department in the same organization.
In organizations functioning with reciprocal interdependence, the various departments have to form strong interwoven relationship to increase effectiveness and productivity.
Answer:
d. Corporations pay income tax on corporate earnings, and shareholders pay personal income tax on corporate dividends and gains from the sale of stock.
Explanation:
At the end of each accounting period, the corporation is expected to pay a tax known as income tax from the taxable income earned by the corporation. This tax is paid by the corporation before the amount to be paid to the shareholders of the company in form of dividends.
The shareholders of the company are further subjected as individuals to personal income tax.
This is known as double taxation of dividend. Gains from sale of stock are also taxed under personal income tax.
Answer: Option (b) is correct.
Explanation:
Given that,
Revenues = $300,000
Merchandise it purchased = $75,000
Salaries paid = $14,000
Owners invested = $23,000
Borrowed on a five-year note = $23,000
Interest paid = $3,000
Paid for a two-year insurance policy = $6,800
Income tax rate = 9%
Gross Margin = Revenues - Cost of Goods Sold
= $300,000 - $75,000
= $225,000
Profit before tax = Gross Margin - Salaries - Insurance payment - Interest
= $225,000 - 14,000 - 3,400 - 3,000
= $204,600
Net Income = Profit before tax - Tax at 9%
= $204,600 - 18,414
= $186,186
Explanation:
The computation is shown below:
Particulars Cost Per unit in ($)
Direct Materials $6
Direct Labor $2
Variable Overhead $1.5
Fixed Cost ($77000 ÷ 35,000 units) $2.2
Total Cost per unit $11.7
So,
1. He will buy the product as it is a saving of $0.7 ($11.7 - $11)
2) The most price willing to pay is $11.7
3) And, There is increase in income by $24,500 by multiply the 35,000 units with the $0.7 per unit in case of buying the part
