1. High Fly earns ticket sales of $3500, has Variable Costs $450 and has Fixed Costs $ 900. Calculate the Degree of Operating Leverage.
2. Belvedere Inc. has an annual payroll of $50 million. The firm pays employees every two weeks on Friday afternoon. Last month, the books were closed on the Tuesday after payday. How much is the payroll accrual at the end of the month? Assume that a year consists of 52 weeks. Assume 5 working days in a week. Round your intermediate calculations to nearest cent. Round your answer to the nearest cent.
3. The Coolidge family has taxable income of $165,000 in 2012. They live in a state in which income over $100,000 is taxed at 14%. What is their total effective (marginal) tax rate? Assume 28% federal tax rate. Round the answer to 2 decimal places.