-Tripp Corporation Owns Manufacturing Facilities in States A,B,and C

question 137

Multiple Choice

-Tripp Corporation owns manufacturing facilities in States A,B,and C.A uses a three-factor apportionment formula under which the sales,property and payroll factors are equally weighted.B uses a three-factor apportionment formula under which sales are double-weighted.C employs a single-factor apportionment factor,based solely on sales.
Tripp's operations generated $1,000,000 of apportionable income,and its sales and payroll activity and average property owned in each of the three states is as follows.

Tripp's apportionable income assigned to C is:

• A)$1,000,000.
• B)$430,542.
• C)$333,333.
• D)$200,000.
• E)$0.

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Definitions:

Total Costs

The sum of all expenses (fixed and variable) incurred in the production of goods or services.

Long-Run Total Cost

The total cost incurred by a firm when all inputs, including both fixed and variable costs, are fully adjustable.

Long-Run Supply Function

A relationship that shows the quantity of goods a firm is willing and able to produce and supply to the market at different possible prices over a long period, considering all inputs as variable.

Factor Prices

The amounts paid to the factors of production, such as wages for labor, rent for land, and profit for capital.