Anthony herrera recently fulfilled his long time dream Anthony Herrera recently fulfilled his long-time dream ofopening a gym that offers spinning exercise classes for$5.38 per person. To differentiate his gym and better servehis clients, Anthony provides a towel, a bottle of water, andan after-workout protein shake to each personparticipating in a class, at a cost of $2.71 per person.Anthony employs three part-time instructors and paysthem each $1,228 per month. He also pays himself amonthly salary of $4,336. Anthony's other monthly costsare $1,684 for rent, $1,414 for depreciation on his 34 bikes,and $1,868 in utilities and insurance.A. What is Anthony's contribution margin per unit?B. What is Anthony's contribution margin ratio?

Step 1: Define Contribution MarginThe contribution is the product price less variable costs. The…

Answered: Anthony Herrera recently fulfilled his…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 37P

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LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $284 per month. If LaMont receives one pass (worth $284) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $284 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $285 per month. Required: If LaMont receives one pass (worth $285) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $285 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $270 per month. a. If LaMont receives one pass (worth $270) each month, how much of this benefit must he include in his gross income each year? b. If the company provides each employee with $270 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $78,300 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) Interest paid on accumulated student loans Cost of purchasing a delivery uniform Contribution to State University deliveryman program $1,200 3,000 1,600 1,400 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. Evan's AGI Taxable income
Jason owns a fish shop where he sells an exotic variety of tuna fish which he imports from Japan.Jason refrigerates the fish in a cold storage facility near his shop that charges him a fixed annual fee of $1000 and variable charge of $5 per day for each fish container that is stored.Every morning, Jason brings fish from the cold storage to his shop for sale. Jason estimates that he incurs $10,000 electricity cost each year on refrigerating the fish inside his own shop.Jason incurs the following ordering costs:Delivery charges of $10,000 per deliveryImport duties of $300 per cartonCustom fees of $200 per orderImport license fee of $150 per annumJason currently imports fish by placing one order of 20 cartons every month. Each carton costs $2,000.Jason is wondering if he can save inventory costs by adopting EOQ model.a) Calculate the current annual total inventory costsb) Calculate the economic order quantityc) Calculate the annual total inventory costs if EOQ is used
Jason owns a fish shop where he sells an exotic variety of tuna fish which he imports fromJapan. Jason refrigerates the fish in a cold storage facility near his shop that charges him avariable charge of $5 per day for each fish container that is stored. In addition the coldstorage charges a fixed annual fee of $1000. Every morning, Jason brings fish from the coldstorage to his shop for sale. Jason estimates that he incurs $10,000 electricity cost each yearon refrigerating the fish inside his own shop.Jason incurs the following ordering costs: Delivery Charges of $10,000 per delivery, andCustom Fees of $200 per order.Jason currently imports fish by placing one order of 20 cartons every month, which is themonthly demand of this tuna fish at his shop. Each carton costs $2,000.Jason is wondering if he can save inventory costs by adopting EOQ model.a)- Calculate the current annual total inventory holding cost and annual total ordering costb)- Calculate the economic order quantityc)-…
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Retail Price Cost Employee Price Specialized road bike $ 7,200 $ 4,900 $ 5,040 Rocky Mountain mountain bike 5,200 3,750 4,160 Trek road bike 3,300 2,760 2,310 Yeti mountain bike 3,300 2,900 2,640 Required: What amount is Jarvie required to include in taxable income from these purchases? What amount of deductions is Bad Dog allowed to claim from these transactions?
Please help me
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie’s current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Retail Price Cost Employee Price Specialized road bike $ 7,400 $ 5,100 $ 5,920 Rocky Mountain mountain bike 4,200 3,500 3,360 Trek road bike 4,700 4,200 3,290 Yeti mountain bike 4,200 3,120 3,360 What amount is Jarvie required to include in taxable income from these purchases?
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie’s current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Retail Price Cost Employee Price Specialized road bike $ 3,900 $ 2,500 $ 2,730 Rocky Mountain mountain bike 4,500 3,900 3,600 Trek road bike 3,400 2,100 2,380 Yeti mountain bike 5,900 5,240 4,720 b. What amount of deductions is Bad Dog allowed to claim from these transactions?
Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Retail Price Specialized road bike $ 4,000 Cost $ 3,600 Employee Price $ 2,800 Rocky Mountain mountain bike 5,000 4,100 4,000 Trek road bike 3,900 3,300 2,730 Yeti mountain bike 4,600 3,400 3,680 a. What amount is Jarvie required to include in taxable income from these purchases? Amount to be included
Natalia makes colorful beaded necklaces and sells them at a local farmer's market. Natalia currently sells her necklaces for $40 each. She spends approximately $18 on the materials (beads, wire, and clasp) and $2 on packaging for each necklace. She pays annual fixed costs of $4,180 ($3,500 for space at the farmer's market, $180 for licenses and permits, and $500 annual depreciation on tent, display cases, and signage). a) How many necklaces does Natalia need to sell in 2021 to break even? necklaces b) How many necklaces does Natalia need to sell in 2021 to earn a profit of $25,000? necklaces c) Natalia's best guess is that she will sell 1,500 necklaces in 2021. If she's correct, what is Natalia's expected 2021 profit? d) Natalia estimates that if she reduces her selling price by 15% in 2021, she will sell 20% more necklaces. What is Natalia's expected profit if she reduces her selling price by 15%? Natalia estimates that if she instead increases her selling price by 15% in 2021, she…

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