Morale means confidence, enthusiasm, and discipline of a person or group at a particular time.
        
             
        
        
        
Answer:
D. Should Shut Down 
Explanation:
A perfect competition firm is at profit maximising equilibrium where : Marginal Revenue [Price] = Marginal Cost . 
If MR > MC : Firm's additional production is profitable, it tends to increase production. If MR < MC : Firm's additional production is loss making, it tends to decrease production.
However, If firm's Price i.e MR < Average Variable Cost : The firm's per unit price is even unable to cover it's per unit average variable cost. This situation is referred to as 'Shut Down' point & firm should close down its production in the case. 
Given : MR = P = 3 ; MC = 4 ; AVC = 3.5 . The firm's price P (3) is not only lesser by its Marginal Cost MC (4), to decrease production ; but also lesser than its Average Variable Cost AVC (3.5) . So, the firm should shut down. 
 
        
             
        
        
        
Answer:
the amount to be used in the numerator is $900,000.
Explanation:
Earnings Per Share = Earnings Attributable to Holders of Common Shares ÷ Weighted Average Number of Common Shares Outstanding.
Diluted Earnings per Share takes into account potential voting rights.
The Preference dividend is <em>not</em> deducted from Net Income as it carries a potential voting right.
 
        
             
        
        
        
Answer:
a.a debit to Cash Dividends for $120,000.
Explanation:
The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.
When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.
As such, since the company has  80,000 shares and the declared dividend  was $1.50,
Total dividend paid = $1.50 × 80000
= $120,000.
Hence cash dividend is debited with $120,000 on payment.