Answer:
The theory of marginal analysis states that whenever marginal benefit exceeds marginal cost, a manager should increase activity to reach the highest net benefit. ... Sunk costs, fixed costs, and average costs do not affect the marginal analysis. They are irrelevant to future
Explanation:
Generally, the more allowances the employee claims on a Form W-4, the lower the withholding tax. Withholding tax applies to income earned through wages, pensions, bonuses, commissions, and gambling winnings. Dividends and capital gains, for example, are not subject to withholding tax