A proposed new investment has projected sales of $832,000. Variable costs are 57 percent of sales, and fixed costs are $187,260; depreciation is $94,500. Assume a tax rate of 30 percent. What is the projected net income

The projected net income of the proposed investment is $53,200.

Explanation:

The net income before tax is $170500 and net income after tax is $119350

Explanation:

firstly we identify operating expenses and non operating expenses which are in this case variable costs and fixed costs which are costs directly involved in the operations of the business, then we have depreciation and the tax rate which are non operational costs that are not directly involved in the business operations directly. so for net income we use the operating costs or expenses to get net income, therefore we calculate the variable costs as we are told it is 57% of sales so $832000 x57% = $474 240

Then we are given fixed costs of $187260 then to get net income before tax we say: sales- operating expenses = net income before tax.

$832000 - ($ 474240 +$187260) = $170 500 which is our income tax then for income after tax we will say net income before tax(1-tax Percentage) = net income after tax.

$170500(1 - 30%) = $119350.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.