The local printing company purchases a new copy machine that reduces the cost of making a color copy by ten cents a copy.It normally makes 50,000 color copies a year and is in the 28 percent income tax bracket.The annual taxes on this purchase will be

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The company saves 10 cents per copy on 50,000 copies, for a total savings of $5,000. The taxes on this savings will be 28% of $5,000, or $1,400.

The Local Printing Company Purchases a New Copy Machine That