Answer:
The amount of sales that will be necessary to earn the desired profit is 16000 units
Explanation:
To get the amount of sales to earn $10000, we make the following equation.
Profit =Sales -variable cost-fixed cost
Profit=10000
Sales=$5.00x
Variable cost= $2.50x
Fixed cost=$30,000
Replacing,
10000=5x-2.5x-30000
10000+30000=2.5x
x=40000/2.5
x=16000
Answer:
C. A surplus of agricultural goods
Explanation:
Un-intervened markets are at equilibrium where Market Demand = Market Supply. Market Supply curve is upward sloping, due to price - supply direct relationship. Market demand curve is downward sloping, due to price - demand inverse relationship. Both curves intersect at equilibrium.
Price floor is minimum mandated price by government, below which a good cant be sold in the markets. It is usually set above market price, to protect the interest of sellers. Eg : Minimum Support price, of agricultural goods, set for protecting interests of sellers (farmers) from volatile prices.
This mandate set artificially high price : leads to supply being more than demand, as supply is directly & demand is inversely related to price. So, supply > demand implies that agricultural goods are at surplus in markets.
Answer:
$101 million income tax expense
Explanation:
The income tax of HD can be computed by beginning with income tax payable less the increase in deferred tax asset in the year and finally by deducting the portion of current deferred tax asset that cannot be realized as shown below:
Current income tax payable $90 million
increase in deferred tax asset($170-$130) ($40 million)
unrealized deferred tax asset ($170*30%) $51 million
income tax expense in income statement $101 million
The HD income tax expense in income statement in 2021 is $101 million as computed due to the fact that prior payment in tax ha been paid in the year
