### Free Educational Resources

• > CENTENNIAL BREWERY PRODUCED REVENUES OF \$1,145,227 IN 2008...
+

# CENTENNIAL BREWERY PRODUCED REVENUES OF \$1,145,227 IN 2008...

(0)
Author: Carol 96
##### Description:

http://theperfecthomework.com/centennial-brewery-produced-revenues-of-1-145-227-in-2008-it-has-expenses-excluding-depreciation-of-812-640-depreciation-of-131-335-and-interest-expense-of-81-112-it-pays-a-marginal-tax-rate-of-34-percent/

CENTENNIAL BREWERY PRODUCED REVENUES OF \$1,145,227 IN 2008. IT HAS EXPENSES (EXCLUDING DEPRECIATION) OF \$812,640, DEPRECIATION OF \$131,335, AND INTEREST EXPENSE OF \$81,112. IT PAYS A MARGINAL TAX RATE OF 34 PERCENT

Centennial Brewery produced revenues of \$1,145,227 in 2008. It has expenses (excluding depreciation) of \$812,640, depreciation of \$131,335, and interest expense of \$81,112. It pays a marginal tax rate of 34 percent. What is the firm’s net income after taxes? Show and label your calculations.
\$120,140
\$248,475
\$79,292 X
\$40,848
Solution:
Earnings before taxes = \$1,145,227 – (\$812,640 + \$131,335 + \$81,112) = \$120,140
Net income = \$120,140 (1 – 0.34) = \$79,292
01. Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.

\$4,900

Direct labor (Variable)

3,500

Rent (per month)

1,100

Depreciation (per month)

900

Other fixed costs

400

Each wing sells for \$0.80 each. What is the budgeted total variable cost?
A. \$8,400
B. \$9,500
C. \$10,400
D. \$10,800
02. Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, \$4,200; hourly labor, \$1,600; depreciation, \$800 per month; monthly rent, \$700; and other fixed costs, \$500 per month. If the production level changes to 500 units, how much will the total costs be?
A. \$9,750
B. \$7,800
C. \$9,250
D. \$1,950
03. Hanover Binding plans to produce 40,000 books next year at a total cost of \$1,640,000 with a selling price per book of \$66.00. The fixed costs total \$280,000. Management is considering lowering the price to \$60.00 per book, and feels that this action will cause sales to climb to 50,000 books. What will be the incremental costs incurred if 50,000 books are sold?
A. \$340,000
B. \$20,000
C. \$1,700,000
D. \$1,300,000
04. Hardigree Insurance has collected the following information over the last six months.
Month Units produced Total costs
March 2,000 \$6,700
April 3,200 9,400
May 2,200 7,100
June 3,000 9,500
July 2,800 8,000
August 2,100 6,600

(more)
##### Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial