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:

Metamorphic Conditions

Conditions involving high temperature and pressure that cause changes in the mineralogy, texture, and chemical composition of rocks.

Shear Zones

Regions of intense deformation in the crust where rocks have been subjected to shear stress, leading to displacement and alteration.

Igneous Intrusions

Igneous intrusions are formations created when molten rock from the Earth's interior cools and solidifies beneath the surface, disrupting the preexisting strata.

Foliation

The repetitive layering in metamorphic rocks caused by the reorientation of minerals under directed pressure.