If the personal income tax rate is greater than zero, which of the following statements is incorrect?

a. in general, the interest rate on taxable (corporate) bonds must be set higher than the interest rate on tax-exempt (municipal) bonds to produce the same amount of usable (after-tax) income for the investor.

b. in general, not-for-profit corporations are able to issue debt for a lower cost than can for-profit corporations.

c. the after-tax cost to an individual of a $1,000 donation to a not-for-profit hospital would be less than $1,000.

d. the after-tax yield from an investment in a tax-exempt (municipal) bond paying 7 percent would be less than 7 percent.

e. the after-tax yield from an investment in a taxable (corporate) bond paying 7 percent would be less than 7 percent.

while setting up his new office, an attorney ordered thick, frieze carpets for the floor. however, the building inspector had him remove the expensive carpeting. the building inspector stated that according to federal regulations, the office must be wheelchair accessible as it is a public area. he further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. this scenario illustrates how a company is influenced by the component of its specific environment.

You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)