Answer:
Air Europe should produce aircrafts
a. True
Explanation:
Air Europe has payoff matrix which will maximize the profits if it chooses to produce air crafts. The airline will be able to earn 90 million if it chooses to produces and will loose 2 million if chooses not to produce. There is subsidy of $9 million which is a plus for Air Europe therefore it should produce aircrafts.
The structure of the tax their income is subject to is regressive based on the tax information on the question above. First, you have to find the tax percentage for each of the people which are 10% for Jake and 7.5% for Jill. The tax percentage decreases in relation to the increase in income and this is the character of a regressive tax.
Answer:
the relevant cost will also include the differential cost for taking the order as it is related to the order being taken or not.
Explanation:
The product is regularly used therefore, it will be sold in the future.
addtional inventory cost:
6,600 x (9.80 - 9.40) = 2,640
Cost of good sold
1,300 x 9.20 = 11,960
<u><em>Total cost for the order 14,600</em></u>
