On a particular Saturday, Tom had planned to paint a room in his house, but his employer gave him the opportunity to work that day. If Tom works, he must hire a painter for $120. For Tom to have a positive cash flow from working and hiring the painter:
A. Tom must earn more than $158 if he is in the 24% marginal tax bracket.
B. Tom must earn at least $158 if he is in the 32% marginal tax bracket.
C. Tom must earn at least $140 if he is in the 24% marginal tax bracket.
D. Tom must earn at least $120 if he is in the 12% marginal tax bracket.
E. None of these.
Answer: A
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Columbus Co.'s sales revenue for the most recent quarter was $2.5 million and cost of goods sold was $1.5 million. If sales grow by 15% in the next quarter and all ratios remain the same, gross profit will be
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