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2 years ago

Highlight the difference between progressive and regressive tax.

Business

1 answer:

Misha Larkins [42]2 years ago

4 0

Answer:

see below

Explanation:

A progressive tax system imposes taxes depending on income earned. The higher the income, the higher the tax rate. It means individuals and entities with a higher income with pay more taxes. A progressive tax system promotes equity by imposing higher taxes on the wealthy and lower taxes on the poor. The US income tax system is an example of a progressive tax.

A regressive tax system does not discriminate on income. It taxes all eligible taxpayers equally regardless of their income level. A regressive tax applies the same tax rate for everyone. Sale tax imposed on goods sold is an example of regressive tax. The regressive tax system takes a higher proposition of income from the low-income earners.

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Fill in the correct words for the skills that Sharia used to make a career plan.

gogolik [260]

#1 goal-setting #2 decision-making

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2 years ago

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Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,00

balandron [24]

Answer:

1. The total incremental cost of making 65,000 units of RX5

Total Direct Material + Total direct Labour + Variable Overhead cost

Total Direct Material = 65,000 units * $5 = $325,000

Total Direct Labour = 65,000 units * $9 = $585,000

Variable Overhead cost = $65,000 * 10 = $650,000. $650,000 *(1- 80%) = $650,000 *20% = $130,000

Hence, The total incremental cost of making = $325,000 + $585,000 + $130,000 = $1,040,000

2. The total incremental cost of buying 65,000 units of RX5 =

The cost to buy the units = 65,000 units * $18 = $1,170,000

3. The company should be making the RX5 because the total cost of making the 65,000 unit of RX5 is lesser than cost of buying the 65,000 units of RX5

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3 years ago

Which one of the following is an example of a nondiversifiable risk?

SSSSS [86.1K]

Answer:

A well-respected chairman of the Federal Reserve Bank suddenly resigns

Explanation:

A non-diversifiable or systematic risk, is a risk which is common to a whole market or class of investments and not just limited to just a particular company or investment.

Non-systematic risk is a risk common to just an investment or a company.

If the chairman of the Federal Reserve Bank suddenly resigns, it would affect a wide range of investments in the market and not just a company, which is an example of a non-diversifiable risk.

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2 years ago

Nico is saving money for his college education. He invests some money at 99%, and $17001700 less than that amount at 4 %.4%. T

Rufina [12.5K]

Answer:

Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

Explanation:

He invests some money at 9%, and $1700 less than that amount at 4 %.

Let Nico invest $x at 9%.

It means he invest $( x-1700) at 4%.

The investments produced a total of $257 interest in 1 yr.

$x\times \frac{9}{100}+(x-1700)\times \frac{4}{100}=257$

$0.09x+(x-1700)0.04=257$

$0.09x+0.04x-68=257$

$0.13x-68=257$

Add 68 on both sides.

$0.13x=257+68$

$0.13x=325$

Divide both sides by 0.13.

$x=2500$

Nico invest $2500 at 9% interest rate.

$x-1700=2500-1700=800$

Nico invest $800 at 4% interest rate.

Therefore Nico invest $2500 at 9% interest rate and $800 at 4% interest rate.

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2 years ago

Suppose that a firm has a price-earnings ratio which is higher than a value deemed to be normal. Investors tend to infer from th

Dmitrij [34]

Answer:

Explanation:

Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.

Price Earnings Ratio = $\frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}$

A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.

This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.

Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.

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3 years ago