Exhibit 16-3  Income for Two Persons in Exhibit 16-3, If

question 105

Multiple Choice

Exhibit 16-3  Income for two persons In Exhibit 16-3, if the income tax system is currently progressive, we know that:

• A) Meredith has a larger tax bill than Hillary, although they pay the same tax rate.
• B) Hillary has a larger tax bill than Meredith, although they pay the same tax rate.
• C) Meredith has a larger tax bill than Hillary and pays a higher tax rate.
• D) Hillary has a larger tax bill than Meredith and pays a higher tax rate.
• E) Meredith and Hillary's tax bills are equal.

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Definitions:

Revenue Centre Manager

An individual responsible for overseeing a business unit or division that is focused on generating revenue, without direct control over costs or investment decisions.

Gross Margin

A company's revenue minus its cost of goods sold, expressed as a percentage of revenues, indicating the efficiency of production and sales.

Transfer Price

The price at which goods and services are sold between divisions within the same company, used for internal sales and profit allocation.

Variable Cost

Costs that change in proportion to the goods or services that a business produces.