Tax liability or tax benefit

Reference no: EM13256639

A company'smanager estimates that in the upcoming year, decreasing advertisingcosts by $30,000 will cause sales revenue to decrease by $80,000.If the company's contribution margin ratio is 40%, what willbe overall effect on net income after tax if thetax rate is 30%? Assume that any tax liability or tax benefit will be taken in the current year.

Reference no: EM13256639

Questions Cloud

How to calculate the change internal energy : Calculate the change internal energy for a system that is giving off 45.0 kJ of heat and is performing 855 J of work on the surroundings.

A job specification : Which popular method of job analysis was pioneered by the U.S. Air Force? A job specification is:

What is the loss in each part if a second mosfet is added : A MOSFET is used in a boost-buck converter. The on-state loss is 4.2 W, and the switching loss is 2.8 W. The device is in TO-220 heat-sink package. it is desired to avoid a heat sink, and a parallel connection has been suggested.

How can the liquid molecules convert to vapor state : The concept of the formation of cavitation really confuses me. It is said that when the local static pressure in the liquid sometimes drops below the vapor pressure of the liquid, bubbles are formed which are called cavitation bubbles.

Tax liability or tax benefit : what willbe overall effect on net income after tax if the tax rate is 30%? Assume that any tax liability or tax benefit will be taken in the current year.

Explain octane reacts with oxygen in a combustion reaction : Using the following equation for the combustion of octane (C8H18) , calculate the heat of reaction (enthalpy change) when 100.0 g of octane C8H18 reacts with oxygen in a combustion reaction. The molar mass of octane is 114.33 g/mole.

What is the company days sales in receivables : A company has net income of $188,000, a profit margin of 10.00 percent, and an accounts receivable balance of $106,557. Assuming 77 percent of sales are on credit, what is the company's days' sales in receivables?

Which 2-parameters are used to determine frequency response : What is the frequency response analysis. Which two parameters are used to determine frequency response. Draw Bode Plot for G(jw) = 10 (jw + 3) / [(jw)(jw + 2)]

Prepare the current assets section of the balance sheet : Short-term investments $8,200. Prepare the current assets section of the balance sheet listing the items in the proper sequence.

User Account

All Pages