Answer:
$3,190
Explanation:
Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses
= $5,000 - $400
= $4,600
Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)
Incremental net income after taxes = $4,600 * (1 - 0.35)
Incremental net income before tax = $4,600 * 0.65
Incremental net income before tax = $2990
Incremental cash flow = Incremental income after taxes + Depreciation
Incremental cash flow = $2,990 + $200
Incremental cash flow = $3,190
Answer:
A growing company may not be earning any profits yet, but may nevertheless provide a great investment opportunity.
Other times, a lack of profitability can be a huge red flag that something is wrong with the firm.
Explanation:
Answer:
$4230 is the correct answer to the given question .
Explanation:
As Mention in the question the sales revenue to the dishwashers = $94,000
Also the company estimated warranty expense cost is =4.5% of revenues,
Now the estimated warranty payable can be determined by the following formula
== $4230
Answer:
would be considered collusion.
Explanation:
Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.
