Contribution margin income statement data for the most recent year follow: total cat food dog food sales revenue $385,000 $300,000 $85,000 variable expenses $205,000 $165,000 $40,000 contribution margin $180,000 $135,000 $45,000 fixed expenses $102,000 $50,000 $52,000 operating income (loss) $78,000 $85,000 $(7,000) assuming the dog food line is discontinued, and all fixed costs will go away, how will operating income be affected?

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

James jones is the owner of a small retail business operated as a sole proprietorship. during 2017, his business recorded the following items of income and expense: revenue from inventory sales $ 147,000 cost of goods sold 33,500 business license tax 2,400 rent on retail space 42,000 supplies 15,000 wages paid to employees 22,000 payroll taxes 1,700 utilities 3,600 compute taxable income attributable to the sole proprietorship by completing schedule c to be included in james’s 2017 form 1040. compute self-employment tax payable on the earnings of james’s sole proprietorship by completing a 2017 schedule se, form 1040. assume your answers to parts a and b are the same for 2018. further assume that james's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. calculate james's 2018 section 199a deduction.