Omar industries manufactures two products: regular and super. the results of operations for 20x1 follow.
regular super
total units 10,000 4,700 14,700
sales revenue $ 260,000 $ 987,000 $ 1,247,000
less:
cost of goods sold 200,000 658,000 858,000
gross margin $ 60,000 $ 329,000 $ 389,000
less:
selling expenses 60,000 189,000 249,000
operating income (loss) $ 0 $ 140,000 $ 140,000
fixed manufacturing costs included in cost of goods sold amount to $3 per unit for regular and $30 per unit for super.
variable selling expenses are $4 per unit for regular and $30 per unit for super; remaining selling amounts are fixed.
required:
1. omar industries wants to drop the regular product line. if the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no alternative use of the facilities. what would be the impact on operating income if regular is discontinued?

Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

When you hire an independent contractor you don't have to pay the contractors what