Taxation Of Individuals And Business Entities, 2010 Edition
1st Edition
ISBN: 9780073526966
Author: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Publisher: McGraw-Hill/Irwin
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Alina’s Catering has a monthly target operating income of $16,000. Variable expenses are 40% of sales and monthly fixed expenses are $14,000. What is Alina’s operating leverage factor at the target level of operating income? a. 0.40 b. 2.67 c. 1.875 d. 0.63
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- Niro Corp. is considering a new four-year expansion project that requires an initial fixed asset investment of $3.2 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will be worthless. The project is estimated to generate $2,450,000 in annual sales, with costs of $620,000. If the tax rate is 30 percent, what is the OCF for the project?arrow_forwardneed solution general accounting methodarrow_forwardPlease Make me Answer with Good Method of General Accountingarrow_forward
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