A Manager Is Considering a Special Project

question 60

Essay

A manager is considering a special project.Corporate policy dictates that all special projects must generate an after-tax profit of $21 000.If the company expects costs related to the project to be equal to $43 000,what is the before-tax cash sales price that should be charged in order to adhere to corporate policy assuming the company has a tax rate of 30 per cent?

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Definitions:

X-Linked

Gene located on an X chromosome.

Incomplete Dominance

A genetic phenomenon where the phenotype of a heterozygote is intermediate between the phenotypes of the two homozygotes, indicating a blend of the parental traits.

Dominant Allele

An allele that expresses its phenotypic effect even when heterozygous with a recessive allele, masking the effect of the recessive allele in heterozygotes.

Recessive Allele

A type of allele that produces its characteristic phenotype only when its paired allele is identical.