Kevin is the financial manager of levingston bmw. the shop allows employees to purchase up to two vehicles at a discount. levingston's average gross profit percentage is 15%. this year kevin purchased a 530 model and a new m3. model fmv dealer cost employee price 530 $63,000 $50,000 $54,000 m3 $70,000 $60,000 $57,000 what amount must kevin include in income? a. $0 b. $2,500 c. $2,950 d. $22,000

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer