Burns Industries currently manufactures and sells 20.000 power saws per month, although it has the capacity to produce 35,000 units per month. At the 20,000-unit-per-month level of production, the per - unit cost is $65, consisting of S40 in variable costs and S25 in fixed costs. Burns sells its saws to retail stores for 580 each. Allen Distributors has offered to purchase 5,000 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs Assume that Allen Distributors offers to purchase the additional 5,000 saws at a price of S47 per unit.
If Burns accepts this price, Burns' monthly gross profit on sales of power saws will:
A. Decrease by $40,000.
B. Decrease by $240,000.
C. Increase by $185,000.
D. Increase by $35.000
Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly. (Use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000. Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.)
What is the tax liability for the following?
a.) Taxable income of $62,449 that includes qualified dividend income of $560.
b.) Taxable income of $12,932 that includes qualified dividend income of $322.
c.) Taxable income of $144,290 that includes qualified dividend income of $4,384.
d.) Taxable income of $43,297 that includes qualified dividend income of $971.
e.) Taxable income of $262,403 that includes qualified dividend income of $12,396.