Assume a Firm Increases Its Revenue by $100 While Increasing

question 90

Multiple Choice

Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85.How much additional tax will the firm owe if its marginal tax rate is 25%?

• A) $3.75
• B) $7.50
• C) $13.75
• D) $25.00

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Definitions:

Alberta

A province in Western Canada, known for its natural beauty, including mountains, forests, and prairies.

British Columbia

A province located on the west coast of Canada, known for its natural beauty and diverse geography.

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Psychological strategies employed unconsciously to protect oneself from anxiety-arising thoughts or feelings.

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A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.