Question

QUESTION 21 Holding all other variables constant, an increase in CGS will lead to: paying more in taxes lower net income or E

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans b. lower net income or EAT

where EAT refers to Earning after taxes or Net income.

Holding all other variables contant, an increase in CGS will lead to lower net income or EAT.

Add a comment
Know the answer?
Add Answer to:
QUESTION 21 Holding all other variables constant, an increase in CGS will lead to: paying more...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Which of the following, holding all other variables constant, will cause an INCREASE in a constant...

    Which of the following, holding all other variables constant, will cause an INCREASE in a constant growth stock's current value? An increase in the number years the stock is held An increase in the market return (k) An increase in the growth rate Both "An increase in the growth rate" & "An increase in the market return (k)" All of these choices are correct.

  • Could you please answer this question: Holding all other things constant, an increase in the company's...

    Could you please answer this question: Holding all other things constant, an increase in the company's required return on investment (ROI) will affect: Select one: a. the selling price under the absorption costing approach to cost-plus pricing b. the profit-maximizing price. c. both the selling price under the absorption costing approach to cost-plus pricing and the profit-maximizing price. d. neither the selling price under the absorption costing approach to cost-plus pricing nor the profit-maximizing price.

  • Which of the following attributes will lead to higher NPV, holding all else constant? i) higher...

    Which of the following attributes will lead to higher NPV, holding all else constant? i) higher expected number of units sold ii) higher inflation in the price of goods to be sold, but not in the costs incurred iii) diseconomies of scale (reduced cost efficiency as a result of a business expansion) iv) increased competition risk A. i B. ii C. i and ii D. i, ii, and iii

  • QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate...

    QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. An appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national...

  • Which of the following attributes would most likely lead to firms having higher WACC, holding all...

    Which of the following attributes would most likely lead to firms having higher WACC, holding all else constant? i) good credit and lower interest charges ii) higher equity market risk premium iii) higher beta iv) lower leverage A. ii and iii B. ii, iii, and iv C. i, iii, iv D. all of the above

  • тров Holding all other factors constant, an increase in imports would most likely cause total GDP...

    тров Holding all other factors constant, an increase in imports would most likely cause total GDP to A. decrease B. remain the same C increase D. All of the above E. None of the above

  • 9-12 If the selling price of an item increases, while all other costs are held constant,...

    9-12 If the selling price of an item increases, while all other costs are held constant, the break-even point in units will: a. increase b. decrease c. remain unchanged d. depend on the original sales price 10. After all variable costs have been deducted from sales, the amount that is available to go toward covering fixed costs and ultimately, profits, is called: a. net sales b. gross profit C. gross margin d. contribution margin The level of sales necessary to...

  • Question 38 1.66 pts Holding all else constant, an increase in the market demand for a...

    Question 38 1.66 pts Holding all else constant, an increase in the market demand for a product in a competitive market would cause a decrease in profits for a firm. the average total cost (ATC) curve of the firms to increase. the marginal revenue (MR) curve of the firms to increase. a decrease in the price a firm could charge for the product. the marginal cost (MC) curve of the firms to increase.

  • 1) An increase in days sales outstanding (DSO), all other things equal, would ________ the cash...

    1) An increase in days sales outstanding (DSO), all other things equal, would ________ the cash conversion period and reflect _________ liquidity. a) increase, increased b) increase, decreased c) decrease, increased d) decrease, decreased 2) Torque Manufacturing forecasts that its production will require 250,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $25 per order. Holding costs are estimated at $2 per ton of bauxite. EOQ...

  • If you are creating a pro forma income statement and projecting an increase in sales revenues of $100,000, your projecte...

    If you are creating a pro forma income statement and projecting an increase in sales revenues of $100,000, your projected net income for the pro forma statement should be _____. A. the same, since total costs will also increase by $100,000 B. $100,000 higher, since costs will not rise because the company sells more goods C. higher, but not $100,000 higher, since some costs will increase and others will not D. lower; the increase in taxes alone will eat up...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT