Answer:
c)
Explanation:
The costumer has no spouse or dependents. This negates the value of the death benefit. The founds has no liquid due to the surrender fees, and there is also 10% penalty on withdrawals before age 59.5
The costs of direct materials, direct labor, and overhead for partially completed products are known as total manufacturing costs.
Direct material costs are the costs of raw materials and parts used to manufacture products. The materials must be clearly identifiable in the resulting product (otherwise they are considered community costs). Direct material costs are one of the few variable costs associated with the production process.
Therefore, it is used to derive the throughput from the production process. The throughput is the revenue minus all fully variable costs. Examples of direct materials include wood used to build houses, automobile steel, radio circuit boards, and fabrics used to assemble garments.
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Answer: $1.4 million
Explanation: As, in the given case we need to compute the depreciation tax shield, we will use marginal corporate tax rate instead of average corporate tax rate as it will result in additional savings to the company in the form of taxes it paid.
Thus, shield amount can be computed as follows :-
($4,000,000) * (35%) = $1,400,000
To find the answer you need to multiply 55,000 times 5 1/4 that is equal to 68750.
