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AveGali [126]
3 years ago
5

. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribu

tion format income statement for the year.
Business
1 answer:
zzz [600]3 years ago
3 0

Answer and Explanation:

The preparation of the contribution margin income statement for the year is presented below:

Sales (45,000 units × $16 per unit) $720,000

Less: variable cost (45,000 units × $180,000 ÷ 30,000 units) -$270,000

Contribution margin $450,000

Less: fixed cost -$300,000

Net operating income $150,000

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Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month
marusya05 [52]

Answer: $1091.61

Explanation:

From the question, we are told that fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract and that this year, he began receiving a $1,300 monthly payment that will continue for his life and based on his age, he can expect to receive $312,000. The amount of each monthly payment is taxable income to Mr. Fairhold goes thus:

Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:

= $50,000/$312,000

= 0.1603

Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:

= $1,300 × 0.1603

= $208.39

Taxable annuity payment will now be:

= $1300 - $208.39

= $1091.61

6 0
3 years ago
If real GDP is $200 billion, full employment GDP is $500 billion, and the marginal propensity to consume is 0.75, then Congress
Anuta_ua [19.1K]

Answer:

The answer is: decrease taxes by $100 billion.

Explanation:

If the real GD is $200 billion, which represents only 40% of full employment GDP, then the government should try to increase consumer spending either by decreasing taxes or increasing government spending, or a combination of both.

In this case, I chose the tax decrease since government have budget limitations and they can only decrease taxes by so much before hitting a deficit. Additionally, when you have a large tax reduction, usually government spending either stays the same or decreases.

If the government decreases taxes by $100 billion, the marginal propensity to consume shall result in a $75 billion increase in consumption. According to the Keynesian Multiplier theory, that $75 billion should generate additional production, creating a virtuous cycle that should increase the real GDP in a larger proportion.

3 0
3 years ago
Free Trade Agreements promote which of the following?
Y_Kistochka [10]

Answer:

I beleive all of these would be the answer sorry if I am incorrect

Explanation:

8 0
3 years ago
On January 1, Year 1, Maverick Company sold bonds that pay interest semiannually on June 30 and December 31. Maverick has a fisc
Fiesta28 [93]

Answer:

$3,003

Explanation:

Interest expense = Effective interest for first interest period × Period of time covered by adjusting entry.

Therefore:

Interest expense = $9,009 × 2/6 = $3,003

The adjusting entry will record interest for the two-month period conservatively which includes January and February, Year 1 in which It will include a debit to Interest Expense in the amount of $3,003.

Hence,

Dr Interest Expenses $3,003

The amount of interest expense that should be accrued by Maverick in an adjusting entry dated February 28, Year 1 is

$3,003

5 0
3 years ago
If a company reports a net loss, it Group of answer choices may still have a net increase in cash. will not be able to pay cash
Flura [38]

Answer:

may still have a net increase in cash

Explanation:

In the case when the company recognized the net loss so it might be the condition that there is an increase in the cash balance as in the case as the closing balance should be more than the beginning balance of cash

So as per the given question, the above should be the answer and the same is relevant

7 0
3 years ago
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