A hotel pays an income tax rate of 28% on its profits. The hotel seeks an after-tax
Question:
A hotel pays an income tax rate of 28% on its profits. The hotel seeks an after-tax profit of $40,000 per month. Rounded up to the nearest dollar, what is the amount of before-tax profit the hotel must achieve each month to meet its after-tax profit goal?
a. $55,556
b. $58,556
c. $61,556
d. $52,556
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
Question Posted:
Students also viewed these Business questions
-
ELZ Ltd. manufactures electronic components. Recently, researchers have identified a new process for manufacturing higher quality, more environmentally friendly components. Because the new process is...
-
InstruChem manufactures chemical cleaning products. Due to recent environmental protection requirements, InstruChem must now improve the final disposition of its chemical by-products. These...
-
Valuation of brand name. When an acquiring firm purchases another firm with established brand names, it will likely allocate a portion of the purchase price to the brand names. Measuring the fair...
-
A Monica who is aged 54, is employed as a Senior Manager with Abacus, a large accounting firm based in Sydney. During the 2020 tax year Abacus contributed $20,000 into QRest Super, which Monica...
-
Tony Smith believes that the price of a particular underlying, currently selling at $93, will increase substantially in the next six months, so he purchases a European call option expiring in six...
-
An isometric exercise is one in which the joint angle does not change during the application of muscle force. For instance, you can join your hands together, pushing down with one hand and pushing up...
-
Under IFRS, for non-financial companies, most non-current assets are measured at: A. Fair value. B. The lower of cost or fair value. C. Cost less depreciation and impairment. D. Net realisable value.
-
What should Niele do now? As Sage Niele, the newly appointed Vice President of Operations and Chief Financial Officer for the Midsouth Chamber of Commerce (MSCC), walked over to the microwave in her...
-
Image transcription text You encounter a split system that uses R-22 refrigerant and observe the following refrigeration parameters from the unit's control display. The unit is operating in cooling...
-
A Global private bank is aggressively looking to leverage technology to improve customer experience and reduce operational costs. Over the last few years, it has tied up with at least five startups...
-
A manager is considering staying open one extra hour per day and wants to calculate his minimum sales point (MSP). The mangers variable costs are 40%, food costs are 30%, and fixed costs are 60%. The...
-
Which is the formula that managers use to calculate their break even point in sales dollars? a. Fixed Costs / Contribution Margin % = Break even point in sales dollars b. Fixed Costs x Contribution...
-
Turnkey Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial measures for quality...
-
What are the basic features of statutory corporation?
-
What is continuous audit? In which case is this audit applicable? State the advantages and disadvantages of continuous audit.
-
State what information you would require and what documentary evidence you would see while vouching the following (a) Freight, Carriage and Custom duty. (b) Commission paid to sole-selling agent. (c)...
-
What are special and general qualifications that an auditor should possess and why?
-
Discuss the advantages of audit (a) to the management (b) to the Government (c) to the shareholders and (d) to the society.
-
Consider an airplane with mass 70 000 kg, cross sectional area 12 m 2 , and drag coefficient 0.03. Estimate the energy needed to get the plane moving at 800 km/h and lift the plane to 10000 m, and...
-
Question 6.10 Current and deferred tax worksheets and tax entries From the hip Ltd?s statement of profit or loss for the year ended 30 June 2007 and extracts from its statements of financial position...
-
Gluxman Company sells 10,000 units at $25 per unit. Variable costs are $22 per unit, and fixed costs are $20,000. Determine (a) The contribution margin ratio, (b) The unit contribution margin , (c)...
-
For the coming year, Viking Products Inc. anticipates a unit selling price of $125, a unit variable cost of $50, and fixed costs of $1,200,000. 1. Compute the anticipated break-even sales (units). 2....
-
Armstrong Company, operating at full capacity, sold 80,000 units at a price of $124 per unit during 2012. Its income statement for 2012 is as follows: The division of costs between fixed and variable...
-
What choice is a multiple of 5? a) 93 b) 63 c) 65 d) 84
-
Determine how many tablets will be needed to give the dosage. Prepare a dosage of 6.4 mg using tablets with a strength of 1.6 mg.
-
(a). Company Inc., private consumer regulator firm, claims that the standard deviation of the rating of Formula One races in the town main car racing circuit was at least 15.34. (b). An outside...
Study smarter with the SolutionInn App