Answer:
The impact of eliminating the backpack division
Particulars Amount
Decrease in contribution margin $480,500 ($950500-$470,000)
<u>Decrease in Expenses:</u>
Fixed expenses <u>$208,800 </u> ($70522,000*40%)
Decrease in Net operating income <u>$271,700</u> (Financial disadvantage)
Answer:
Judy may deduct $54,000 of the net losses.
Explanation:
2018 Passive Activity Limitations $39,500
Passive Income ($33,500) – loss allowed to the extent of passive income
Suspended Passive Activity Limitations $6,000
2019 Passive Activity Limitations $69,500
Passive Income ($21,500) – loss allowed to the extent of passive income
Suspended Passive Activity Limitations $48,000
$54,000 Suspended Passive Activity Limitations
B. Participative management and empowerment
Meritocracy is a system based on
a dominant ideology involving the widely shared belief that all people have an
equal chance of succeeding economically or a political philosophy stating that
power should be vested in individuals based on their hard work and skills.
The pricing objective of a firm that adjusts price levels so it can increase sales volume to match organizational expenses is survival.