Answer:
$118,860
Explanation:
Gross Margin:
= Revenue - Cost of Goods Sold
= $290,000 - $100,000
= $190,000
Profit before tax:
= Gross Margin - Salaries - Insurance payment - Interest
= $190,000 - $12,000 - $3,600 - $4,600
= $169,800
Insurance payment: Only half of 2-year payment of 7,200 is relevant for this year.
Net Income:
= Profit before tax - Tax at 30%
= $169,800 - (30% × $169,800)
= $169,800 - $50,940
= $118,860
Answer:
The answer is B. Ethan has more experience than Karen.
Explanation:
Now, lets take each Answer option separately and see why only B is correct.
Option A is no longer legally accepted or ethical. Perhaps during the era of segregation back in 1960s' this option could have been acceptable. But today it is illegal and is considered as a violation of basic human rights.
Option C is not correct as well because although people with special needs and physical requirements are entitled to receive certain special treatments, paying them more solely based on their disability is not considered suitable nor ethical.
Option D is unacceptable. No one can assume that men have more stamina than women. There are competent, strong and qualified women who can do their jobs much better than men. So we cannot accept this as an answer.
Option E is incorrect as well. Although a person could be an immigrant, once that person has lawfully taken the citizenship of a country, that "immigrant" is considered as a "citizen" of that country (this is not applicable for illegal immigrants!).
However, we can take option B as the answer. This is because when comparing a new employee with a more experienced employee, we can't see any problem in paying the experienced employee more.
Answer:
(B) Operating income has increased as a percentage of revenue
Explanation:
Conducting a vertical analysis,
Operating income (year 1) = Fees earned, less operating expenses
= 149,700 - 127,245 = $22,455
Therefore operating income as a percentage of revenue = 22,455/149,700 = 15%.
Operating income (year 2) = 153,500 - 122,800 = $30,700
Therefore operating income as a percentage of revenue = 30,700/153,500 = 20%.
Therefore, operating income as a percentage of revenue increased from year 1 to year 2.
1 and 5 would be the numbers
Option D. The size of the market
This is because they have an idea that with a larger market size the can gain economies of scale and make a larger profit.
