Respuesta :
Answer:
Follows are the solution to this question:
Explanation:
In point A-1:
Calculating the value of Incremental sales after tax:
Further revenues= $414,000
Recognize(Less)=Costs
Debt worth =$33,120
Set Exp. = $17,400
Production and commercialization cost= $314,640
Pre-sales tax =$48,840.
Lower: 35% tax = $17,094
Incremental tax income =$31,746
In point A-2:
Determine profits for extra expenditure
Extra spending on debts [tex]= \frac{ \$ 414,000}{\$ 5}[/tex]
[tex]= \$ 82,800.[/tex]
Return on the Expenditure [tex]= \frac{\$ 31746}{ \$ 82800}[/tex]
[tex]= 38.34 \%[/tex]
In point A-3:
Yeah, For the Fast Turnstiles company must provide certain consumers with loans.
In point B-1:
Incremental taxes after-tax calculation:
Further sales = $ 414,000
Return: Costs
gross debt= $45,540
Set Exp = $17,400
Cost for production and marketing = $314,640
Net profits=$ 36,420
Without tax 35% = $12,747
Incremental tax revenue= $23,673
In point B-2:
Determine profits for extra expenditure
Extra investment in debts [tex]= \frac{ \$ 414,000 }{ \$ 5}[/tex]
[tex]= \$ 82,800[/tex]
Incremental return on that investment [tex]= \frac{\$ 23673}{\$ 82800}[/tex]
[tex]= 28.59 \%[/tex]
In point B-3:
Yeah, The Fast Turnstiles company must provide to certain consumers to credit.
In point C-1:
The incremental tax revenue estimate
$414,000 = excess revenue
Remember Costs
Debt worth= $ 33,120
set Exp = $17,400
Production and commercialization cost= $314,640
Pre- sales tax = $48,840.
Less: 35% Tax = $17,094
Incremental tax income= $31,746
Calculate profits for extra expenditure
Extra Accounting Investment [tex]= \frac{\$ 414000}{1.6}[/tex]
[tex]= \$ 258750[/tex]
Incremental Return[tex]= \frac{\$ 31,746} {\$ 258,750}[/tex]
[tex]= 12.27 \%[/tex]
In point C-2:
Yeah, its credit should be granted to all these consumers through Fast Turnstiles company limited.
