Answer:
$725000
Explanation:
The break-even point is the point at which the firms total expenses is equal to its total revenue and it neither makes a profit nor a loss. At any point before this, the firm makes a loss and at any point after this, the firm is making a profit. This is because, it has got to a point where after the unit variable costs are covered from the revenue, there is enough to cover fixed costs as well because the firm’s fixed costs are now being spread over a greater number of units.
The break-even point is calculated as:
Fixed costs / (Selling price per unit - variable cost per unit)
Hence, in this case : $253750 / ($100 - $65) = 7250 units.
In dollars, this would be...
Revenue : 7250 x $100 = $725000
Expenses : $253750 + ($65 x 7250) = $725000
$2,000 is her alternative minimum tax liability for the year. Because Harmony's tentative minimum tax exceeds her regular tax, the $2,000 difference is her alternative minimum tax liability for the year.
<h3>
What is Tax Liability?</h3>
- The amount that a person, company, or other entity owes to a federal, state, or local tax authority is known as their tax liability.
- The selling of an investment or other item that generates income generally results in the creation of a tax burden. When purchasing items, one may be required to pay a municipal or state sales tax. (Although several nations do, the United States does not impose a national sales tax.)
- If a person's overall tax debt was nil or if their income was too low to necessitate filing tax returns, they might not have any income tax burden.
To learn more about Tax Liability with the given link
brainly.com/question/15394738
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The answer to the question above is "no, the business is not optimizing" according to the information shown on the question above. In this situation, we have the greater marginal revenue (4=8*(1-1/2)) than the marginal cost (0)and the business is not in its full capacity. The parking lot business can increase its marginal cost to achieve its full capacity to gain more profit.
Answer:
d. decrease the firm's WACC.
Explanation:
As per WACC formula
WACC = ( Weight of Common Equity x Cost of Common Equity ) + ( Weight of Common Debt x Cost of Common Debt x ( 1 - Tax rate ) ) + ( Weight of Preferred Equity x Cost of Preferred Equity )
By assuming the values to prove the answer
Weights
Common equity = 55%
Preferred Equity = 15%
Debt = 30%
Costs
Common equity = 15%
Preferred Equity = 8%
Debt = 12%
Tax rate is 15%
Placing values in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 15% ) ) + ( 15% x 8% )
WACC = 8.25% + 3.06% + 1.2% = 12.51%
Keeping others values constant, Now increase the Tax rate to 25% and placing vlaues in the formula
WACC = ( 55% x 15% ) + ( 30% x 12% x ( 1 - 25% ) ) + ( 15% x 8% )
WACC = 8.25% + 2.7 + 1.2% = 12.15%
Hence the WACC is decreased from 12.51% to 12.15% when the tax rate is increased from 15% to 25% keeping other values constant.
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed statement using the direct method
