Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 52

MATTEL INC. - TAXES AND INSURANCE
www.mattel.com
Facts:
• 1945: Founded by Elliot and Ruth Handler
• 1959: Barbie introduced
• 2004: More than one billion Barbies sold
• 2011: Sales over $5 billion
Antique dolls representing adults from the 17th and 18th centuries have been found, but they are very rare. Individual craftsmen in England made most of these earliest dolls. The craftsmen carved the dolls of wood, painted their features, and also designed the costumes for the dolls. Some of these earliest dolls are valued at more than $40,000.
The Barbie doll is the most popular fashion doll ever created. If all the Barbie dolls that have been sold since 1959 were placed head-to-toe, the dolls would circle the earth more than seven times. The most popular Barbie ever sold was the Totally Hair Barbie, which was introduced in 1992. With hair from the top of her head to her toes, more than 10 million of these dolls were sold, resulting in revenue of $100 million. With annual retail sales at an estimated $3.6 billion, Barbie is the #1 brand of doll for girls.
Martha Spencer started The Doll House and sells dolls around the world through her Web site. Her business has grown over the years, but she still carefully watches costs. She knows that she must control costs to be successful. Help her figure out some of these costs.
Spencer is looking at a building that she hopes to buy for what she believes is the fair market value of $310,000. However, the replacement cost is estimated to be $420,000. The assessment rate is 30% and the tax rate is $64 per $1000 of assessed value. Find the property tax for the year.
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