A company is in the 40 percent tax bracket. Why is desired profit after tax divided by

Question:

A company is in the 40 percent tax bracket. Why is desired profit after tax divided by 60 percent to determine the needed before-tax profit amount?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Accounting Traditions and Innovations

ISBN: 978-0324026450

4th edition

Authors: Barfield Jesse, Raiborn Cecily, Kinney Michael

See More Books

Question Posted: Dec 27, 2016 08:30 AM

See More Questions

Lou Lewis, the president of the Lewisville Company, has asked you to give him an analysis of the best use of a warehouse the company owns. a. Lewisville Company is currently leasing the warehouse to...
Multiple Choice Questions 1. If a company has a $25,000 reduction in sales and an increase of $7,000 in fixed costs with a contribution margin ratio of 34 percent, by how much will net income change?...
A company has 1,000,000 shares of common stock outstanding, and the current market price is $50 per share. The company has also issued 20.000 bonds (S1,000 maturity value each), which are presently...
Determine A in the indicated figures. Fig. 2.40 (a) A 84 (a) 40 B
On January 1, 2007 the Somerville Corporation sold a used truck to the Cornelius Company and accepted a $28,000 non-interest-bearing note due January 1, 2010. Somerville carried the truck on its...
This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future. 10001w
In some multicultural organizations, nationalist feelings or anti-foreigner prejudice or both are at the root of various kinds of discrimination. For instance, minority employees may be excluded...
Using the information provided here for the Airport Enterprise Fund of the City of Demere, prepare a statement of revenues, expenses, and changes in fund net position for 20X3. Charges for services ....
Materials Variances Manzana Company produces apple juice sold in gallons. Recently, the company adopted the following material standard for one gallon of its apple juice: Direct materials 128 oz. @...
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
What is the contribution margin ratio? How is it used to calculate the breakeven point?
What is meant by the "bag" assumption and why is it necessary in a multiproduct firm? What additional assumption must be made in multiproduct CVP analysis that doesn't pertain to a single-product CVP...
A foreign currency transaction can be denominated in one currency, yet measured in another. Explain the difference between these two terms using the case of a Canadian dollar borrowing on the part of...
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is...
Briefly describe the case you have chosen. Categorize the social worker's experience as vicarious trauma, compassion fatigue, or burnout. Provide justification. Identify the social worker's score on...
Given f(x) below, find f'(x). f(x) = = m 5z In (2) et dt
Olsen & Alain, CPAs (O&A) performed the audit of Rocky Point Brewery (RPB), a public company in 20X1 and 20X2. In 20X2, O&A also performed tax services for the company. Which statement best describes...
Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in...
Hydrogen and chlorine atoms react to form simple diatomic molecules in a 1:1 ratio, that is, HCl. The percent isotopic abundances of the chlorine isotopes are 35 Cl and 37 Cl are estimated to be...
The roof of a refrigerated truck compartment is of composite construction, consisting of a layer of foamed urethane insulation (t2 = 50 mm, ki = 0.026 W/m K sandwiched between aluminum alloy panels...
One aspect of obtaining a college education is the prospect of improved future earnings in comparison to non-college graduates. Sharon Shay estimates that a college education has a $28,000 equivalent...
An investor purchased a one-acre lot on the outskirts of a city for $9000 cash. Each year he paid $80 of property taxes. At the end of 4 years, he sold the lot. After deducting his selling expenses,...
A popular reader's digest offers a lifetime subscription to the magazine for $200. Such a sub sanction may be given as a gift to an infant at birth (the parents can read it in those early years), or...
You are evaluating a new project for the firm you work for, a publicly listed firm. The firm typically finances new projects using the same mix of financing as in its capital structure, but this...
state, "The subscription price during a rights offering is normally r; lower ; lower r; higher er; higher than the rights-on price and
Arnold inc. is considering a proposal to manufacture high end protein bars used as food supplements by body builders. The project requires an upfront investment into equipment of $1.4 million. This...

A company is in the 40 percent tax bracket. Why is desired profit after tax divided by

Question:

Step by Step Answer:

The profit after tax represents the net of tax amount In or...View the full answer

Cost Accounting Traditions and Innovations

Students also viewed these Managerial Accounting questions