If each twisted clevis costs $10 and 1,200,000 are sold before a $3 excise tax is placed on the sale of each twisted clevis, and then each twisted clevis costs $12.50 and 1,000,000 are sold after the $3 excise tax, the company will receive in total revenue. Question 16 options: a) $3,000,000 b) $12,500,000 c) $2.50 d) $2,500,000
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- 2. Allwhite Company sells its single product for P30 per unit. The contribution margin ratio is 45%, and fixed costs are P10,000 per month. Allred has an effective income tax rate of 40%. If Allred sells 1,000 units in the current month, Allwhite's variable expenses would be O Ph 9,900 Ph 12,000 O Ph 13,500 O Ph 16,500Straight Line Depreciation Example: If an asset costs $20,000, has an estimated salvage value of $5,000 and a useful life of 5 years, the annual straight-line depreciation charge is calculated as:An electricity generation company currently emits 99 tons of sulfur dioxide. Sulfur dioxide emissions contribute to respiratory illness and create acid rain when combined with other chemicals in the atmosphere. The table below shows the marginal cost of abatement, which increases as different abatement techniques are used. Quantity Abated (tons) Marginal Cost of Abatement per Ton 11 $5,000$5,000 22 $8,000$8,000 33 $15,000$15,000 44 $20,000$20,000 55 $30,000$30,000 66 $42,000$42,000 77 $56,000$56,000 88 $80,000$80,000 99 $135,000$135,000 Suppose the government imposes a pollution tax of $44,000$44,000 per ton of sulfur dioxide emitted. How many tons of sulfur dioxide will the company abate, and how many tons of sulfur dioxide will it emit? Write the exact answers. Do not round.
- 1. Victor's Jewelers sells watches for R500 each. During the next month, they estimate that they will sell 15, 25, 35, or 45 watches. They can only buy watches in lots of ten from their dealer, where 10, 20, 30, 40, and 50 watches cost R400, R390, R370, R360, and R340 per watch respectively. Every month, Victor has a clearance sale and will get rid of any unsold watches for R240 (watches are only in style for a month and so they have to buy the latest model each month). Any customer that comes in during the month to buy a watch, but is unable to, costs Victor R60 in lost goodwill. Set-up the payoff matrix for this problem.The village has a hiking lodge whose visitors use the lake for recreation. The village also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the hiking lodge's economic profit. Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the hiking lodge would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $2,200 per week, and the hiking lodge's economic profit is $3,200 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $3,000 per week, and the hiking lodge's economic profit is $2,000 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish…A process plant making 5000kg /day of a product selling for $1.75 per kg has annual directproduction costs of $2 million at 100 percent capacity and other fixed costs of $700,000. What isthe fixed charge per kg at the break-even point? If the selling price of the product is increased by10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35percent of gross earnings?
- Personal income tax rates in South Africa, 2015/16 Taxable income Tax Payable Rand 0-181 900 181 901-284 100 284 101-393 200 393201-550 100 550 101-701 300 701 301 and above 18% of each R1 +26% of the amount above R181 900 +31% of the amount above R284 100 +36% of the amount above R393 200 +39% of the amount above R550 100 + 41% of the amount above R701 300 R 32 742 R 59 314 R 93 135 R 149 619 R 208 587 Use the table above to: Calculate income tax of an individual if income is R170 000 Calculate income tax of an individual if income is R350 000To automate one of its production processes, theMilwaukee Corporation bought three flexible manufacturing cells at a price of $400,000 each. Whenthey were delivered, Milwaukee paid freight chargesof $20,000 and handling fees of $15,000. Site preparation for these cells cost $45,000. Six foremen, eachearning $20 an hour, worked five 40-hour weeks toset up and test the manufacturing cells. Special wiring and other materials applicable to the new manufacturing cells cost $3,500. Determine the cost basis(amount to be capitalized) for these cells.Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.08 million. The lathe will cost $31,500 to run, will save the firm $123,300 in labour costs, and will be useful for 9 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25%. Ilana has many other assets in this asset class. The lathe is expected to have a 9-year life with a salvage value of $101,000. The actual market value of the lathe at that time will also be $101,000. The discount rate is 5% and the corporate tax rate is 35%. What is the NPV of buying the new lathe? (Round your answer to the nearest cent.) NPV $
- 5- XYZ electric company manufactures a number of electric products. Rechargeable light is one of the XYZ's products that sells for $180 per unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Answer the following questions: a) Compute break-even point of the company in units. b) Compute break-even point of the company in dollars. c) Compute the number of rechargeable lights to be sold to earn a net operating income of $189,000 per monthDetermine the hourly cost of tires for a hydraulic excavator, whose set of tires cost S4,500 with a useful life of 3500 hours. The average cost of repairs is 12 percent of depreciation. Select the correct response: O $1.15 O $1.44 O $1.26 S1.302. J&J Company is considering publishing a paperback textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and production setup is estimated to beP100,000. Variable production and material costs are estimated to be P150 per book. Demand over the life of the book is estimated to be 4000 copies. The publisher plans to sell the text to college and university bookstores forP1000 each. REQUIRED: a. Formulate the total cost function. b. Formulate the revenue function. c. Formulate the profit function. d. What is the breakeven point? e. What profit or loss can be anticipated with a demand of 4000 copies? f. With a demand of 4000 copies, what is the minimum price per copy that the publisher must charge to break even? g. If the publisher believes that the price per copy could be increased to P1, 297. 50 and would not affect the anticipated demand of 4000 copies, what action would you recommend? h. What profit or loss can be…