Answer:
$73,500
Explanation:
The computation of the absorption costing net operating income last year is shown below:
= Variable costing net operating income - inventory units × Fixed manufacturing overhead cost per unit
= $81,900 - 2,800 units × $3
= $81,900 - $8,400
= $73,500
We simply deduct the fixed manufacturing overhead cost from the variable costing net operating income to find out the absorption costing net operating income
Answer:
The correct answer is letter "A": family branding.
Explanation:
Family branding is a strategy entrepreneurs follow by naming the same or partly equal different businesses with diverse markets to take advantage of the reputation one of those businesses have obtained. The naming is legal and in most cases represents a partnership between those businesses or a license given by the main company to allow others to use part of the same name in exchange for a fee.
Answer:
Calculate the tax consequence of withdrawal from retirement account.
T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.
Analysis
They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.
Calculation of tax consequences if withdrawal amount is $2,100:
Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.
= $2100 × 35%
= $735
The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.
= $2100 × 10%
= $210
(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)
Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:
Total expenses =$735 + $210
Total expenses = $945
Conclusion
Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.
Answer:
No debt of any kind.
Explanation:
Then the firm has “no debt of any kind” because the company has the equity multiplier ratio is 1.
We have given the return on assets is 15 % and the same return is on the equity that is 15%.
Thus, the equity multiplier ratio can be calculated by dividing the total assets / total equity.
Equity mulitplier ratio = Total Assets / Total equity.
Answer:
$270,000
Explanation:
Contribution per kite = $6.50 - $3.50 = $3.00
Break even point = 90,000 kites
Since;
Break even point = Fixed cost / Contribution per kite.
We have:
90,000 = Fixed cost / $3.00
Fixed cost = 90,000 * $3.00 = $270,000
Therefore, Ocean City Kite Company's fixed costs is $270,000.
