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

Question

Quizplus · Accepted Answer

The savings from the reduced cost is 50,000 copies * $0.10 = $5,000. The tax on this savings is $5,000 * 28% = $1,400.

The Local Printing Company Purchases a New Copy Machine That