Revenue Increases by $200 and the Cost of Goods Sold

question 45

Multiple Choice

Revenue increases by $200 and the cost of goods sold is 78%.What dollar amount of extra taxes will be owed if the marginal tax rate is 35%?

• A)$70.00
• B)$44.00
• C)$54.60
• D)$15.40

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Definitions:

Equal Size

A condition or notion where elements or objects possess the same dimensions, volume, or quantity.

Business Travelers

Individuals who travel primarily for business purposes, often involving visits to different cities or countries.

Leisure Travelers

Individuals or groups traveling for non-business purposes, such as relaxation, vacation, or recreation.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes.