Answer:
A. Shut down immediately, as the firm is not able to cover all of its variable costs.
Explanation:
Unfortunately, the company contribution is negative. Even at maximum revenue it cannot cover the variable cost needed to produce this revenue. Therefore, is not possible to make a gross profit to afford the rest of the cost. Currently, the company has their fixed cost and the loss from operations.
If it shut down, it will stop the loss from operations and only leave the fixed cost.
Answer:
c. The support test for qualifying relatives focuses on the support the potential dependent provides while the support test for qualifying children focuses on the support the taxpayer provides.
Explanation:
No, the qualifying relative is the person other than children dependent on the individual, it includes only the family connected directly through blood, and legal relations.
Like spouse of individual, parents of either own or spouse, brother and sister of individual.
Whereas the children to qualify need to be dependent on the individual parent, claiming deduction, it does not matter if the child is adopted or born, as he shall be the legal child, dependent on parent claiming his deduction.
Therefore, statement C is incorrect.
Answer:
Total cost= $4,278
Explanation:
Giving the following information:
Each unit of output requires 0.05 direct labor-hours. The direct labor rate is $9.20 per direct labor-hour. The production budget calls for producing 4,400 units in February and 4,900 units in March.
Production in hours:
February= 0.05*4,400= 220 hours
March= 0.05*4,900= 245 hours
Total cost= 220*9.20 + 245*9.2= $4,278
False !! it will be low in low season !!
You need to think of how much money you will be withdrawing
if any, and how much interest you will earn. I keep my money in a ROTH ira and
at a credit union. I choose to keep my money here because in the ROTH I earn a
lot of interest and my money is available if necessary. I keep the other half
at a credit union because of the limited fees and the benefits it gives me
because I still go to school.