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No, income tax is calculated after all other fixed and variable costs are considered and deducted from gross sales. That number is your Net Profit, and income tax is calculated based on that number (not on the number of units one produces).
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What are the effects of tax on in com distribution?
There are two types of tax that is related to income equality: Regressive tax: The tax as a percentage of your income decrease as your income rises. Example includes VAT (Value Added Tax) where the burden of the tax falls more heavily onb the poor than to the rich. Therefore it increases the income inequality. Progressive tax: The tax as a percentage of your income increases as your income rises. Example includes income tax where as your income rises, the tax percentage increases. Therefore, it creates more income equality.
Marginal versus variable costing?
Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. Variable cost is the sum of all the individual marginal costs. The derivative of the Variable Cost is the Marginal Cost. The integral of the Marginal cost is the Variable Cost.
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
What is the difference between income tax and service tax?
Income tax is the tax that is charged to your income that can be paid with the preparation of tax forms or is withheld from your paycheck. Service tax refers to the tax that is charged for services, like care repair.
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
Is state income tax is period cost or product cost?
period cost
How do you calculate total variable expenses in a contribution income statement?
Total variable cost is typically the sum of all variable labor, variable materials, and variable overhead expenses.
Is there a tax deduction for the cost of your domestic partner's health premiums?
No. In fact, your employer is likely to report this cost as "imputed income" which means you will have to pay tax on this amount. No tax is owed if your domestic partner is also you dependent for purposes of federal income tax.
What is the target net income?
Target Net income = (Target Operating income)-(Target Operating income x Tax rate) Target operating income = (Revenues-Variable costs)- Fixed Costs
What is targets net income?
Target Net income = (Target Operating income)-(Target Operating income x Tax rate) Target operating income = (Revenues-Variable costs)- Fixed Costs
How do you compute total fixed cost assuming a break even in dollars is nine hundred thousand dollar and variable cost is 630000 income tax is forty percent and contribution margin ratio is thirty per?
A contribution margin of 30% translates to Sales of $900,000 (sales-variable cost)/sales=contribution margin ratio. Since this sales level is also the break even point, there is no operating profit. Thus, a 40% tax rate is immaterial and total fixed cost equals sales minus variable cost or $270,000.
How much does it cost to get an income tax return online?
I have seen several websites that allow you to file your tax returns online for free or at a very low cost. You can also hire someone to file your income tax return for you. If you hire someone, it can cost you anywhere from $50 - $100.
Why is the cost of living in Texas so low?
No state income tax.
How reliable is a free income tax estimator?
A free income tax estimator is worth exactly the cost. In other words, it is worthless. The calculations involved in preparing an income tax return are complex and cannot be reduced to a single number.
When was federal income tax first collected?
The first Federal Income tax was collected in 1862. It was to help pay the cost of the United States Civil War.
If you sold 3000 units at 500 each variable expense were 350 per unit and fixed expenses were 200000 what is the net income?
Sales = 1500000 Less. variable cost = 1050000 Less: fixed cost = 200000 Net income = 250000
What is variable cost and contribution margin if Sales is 25000000 fixed cost is 12000000 net operating income is 5000000?
48%
