Question

Revenue increases by $200 and the cost of goods sold is 70%. What dollar amount of...

Revenue increases by $200 and the cost of goods sold is 70%. What dollar amount of extra taxes will be owed if the marginal tax rate is 30%? Provide the steps that you used to solve this question.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Incremental revenue $       200
Cost of goods sold 200*70% $       140
Profit 60-40 $         60
Tax on profit 60*30% $         18
dollar amount of extra taxes = $         18
Answer = $         18
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If Apple Computer Inc. is used as the model, then new firms should expect to raise...
If Apple Computer Inc. is used as the model, then new firms should expect to raise capital in which one of these orders? Start with the first money raised. owners, venture capitalists, suppliers, public investors venture capitalists, owners, public investors, suppliers owners, suppliers, venture capitalists, public investors owners, public investors, venture capitalists, suppliers Revenue increases by $200 and the cost of goods sold is 78%. What dollar amount of extra taxes will be owed if the marginal tax rate is...
What happens if marginal revenue is negative? A. Total revenue will fall if another unit is...
What happens if marginal revenue is negative? A. Total revenue will fall if another unit is sold B. Total revenue increases by a small amount if another unit is sold C. The price of a unit is negative D. Total revenue increases by a falling amount if more units are sold What does marginal product of labour measure? A. Total output/number of employees B. Total output per worker C. The extra output produced when you hire another employee D. The...
Jefferson Industries had sales of $2,000,000 in 2019. Cost of goods sold was 70% of sales....
Jefferson Industries had sales of $2,000,000 in 2019. Cost of goods sold was 70% of sales. Selling & Admin. Expenses were 15% of sales. Depreciation was $25,000 and Interest expense was $10,000. The firm’s tax rate is 25%. (a) Compute earnings after taxes. (b) compute EPS, given there are 100,000 shares of stock outstanding – round to two decimal places.d
Assume that PROCTER & GAMBLE  has net sales of $250, cost of goods sold of $200, admin...
Assume that PROCTER & GAMBLE  has net sales of $250, cost of goods sold of $200, admin expenses of $20, a depreciation expense of $10, an interest expense of $70, and no (ZERO)  tax liabilities.  Dividends are 0.  What effect does this have on the balance sheet?  (ASSUME ALL ELSE CONSTANT). a.  it has no effect on the balance sheet b.  it increases owner's equity on the balance sheet c.  it decreases owner's equity on the balance sheet d.  it decreases the market value of the assets on the...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue $200,000 Cost of goods sold $80,000 Gross profit $120,000 Operating expenses $101,000 Interest expense $4,000 Income before income tax $15,000 Income tax expense (rate 20%) $3,000 Net income
Lemon Auto Wholesalers had sales of $1,040,000 last year, and cost of goods sold represented 74...
Lemon Auto Wholesalers had sales of $1,040,000 last year, and cost of goods sold represented 74 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $11,000 and interest expense for the year was $14,000. The firm’s tax rate is 30 percent. a. Compute earnings after taxes. b-1. Assume the firm hires Ms. Carr, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 14 percent of sales, sales...
Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000,...
Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, interest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was: A. $1,600 B. $500 C. $1,000 D. $0
Exercise 5-2 Redlands, Inc. expects cost of goods sold to equal 60% of sales revenue. Management...
Exercise 5-2 Redlands, Inc. expects cost of goods sold to equal 60% of sales revenue. Management also established required inventory amounts for the end of each quarter as noted below. The firm’s partially completed purchases budget is as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Sales revenue $200 $300 $300 $400 $1,200 Cost of sales + Ending inventory    40    60    70    80 Inventory required - Beginning inventory      30           Purchases Required: Complete...
Your pro forma income statement shows sales of $956,000​, cost of goods sold as $496,000​, depreciation...
Your pro forma income statement shows sales of $956,000​, cost of goods sold as $496,000​, depreciation expense of $102,000​, and taxes of $143,200 due to a tax rate of 40%. What are your pro forma​ earnings? What is your pro forma free cash​ flow? Complete the pro forma income statement​ below:  ​(Round to the nearest​ dollar.) Sales $ Cost of Goods Sold $ Gross Profit $ Depreciation $ EBIT $ Taxes (40%) $ Earnings $ The pro forma free cash...
Your pro forma income statement shows sales of $975,000​, cost of goods sold as $503,000​, depreciation...
Your pro forma income statement shows sales of $975,000​, cost of goods sold as $503,000​, depreciation expense of $102,000​, and taxes of $148,000 due to a tax rate of 40 % What are your pro forma​ earnings? What is your pro forma free cash​ flow? Complete the pro forma income statement​ below:  ​(Round to the nearest​ dollar.) Sales $ Cost of Goods Sold $ Gross Profit $ Depreciation $ EBIT $ Taxes (40%) $ Earnings $
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT