A firm could continue to operate for
years without ever earning a profit as long as it is producing an output where
<span> B. MR
>AVC</span>
<span>MR stands
for marginal revenue which is the sale price of a single item sold. On the
other hand, AVC or the average variable cost is the firm’s variable costs
divided by its output that is produced.</span>
Used closed ended probes. Open ended probes would be inviting an explanatory answer. I.e. Are you a man (closed ended). Or. How would you best describe your gender (open ended)
Answer:
The equivalent units for direct materials is 800 units
Explanation:
The following information is giving in the question which is shown below:
1. Starting units = 700 units
2. Ending Work in progress = 200 units
3.Material = 50% of Ending WIP
= 100 units
By using these information, the equivalent units for direct materials is shown below:
= Starting units + units of Material
= 700 + 100
= 800 units
Thus, the equivalent units for direct materials is 800 units.
Answer:
Renters insurance only covers personal belongings, whereas homeowners insurance covers personal belongings and the entire home or the property homeowners insurance covers everything
Answer:
a. Orange Furniture must include <u>$1,000</u> in gross income as the recovery of a prior deduction cost.
Since the 2016 bad debt deduction resulted in a tax benefit, the $1,000 recovery will be considered income. Orange's cost for this transaction = (35% 2015 tax rate - 12% 2016 tax rate) x $1,000 recovery = 23% x $1,000 = $230
b. How much must Marvin include in his gross income for 2017? <u>$800</u>
Marvin's net benefit from itemizing his taxes was $800, so that amount must be included as gross income due to the state's refund. Marvin will actually suffer a lose due to this transaction since during 2016, he was in the 15% tax bracket, while during 2017 his tax bracket is 35%. He saved 15% x $800 = $120 for 2016, but will have to pay 35% x $800 = $280 during 2017.
c. What amount, if any, will Barb include in her 2017 gross income? <u>$3,000</u>
Since Barb was able to recover the medical expenses, she must include in her gross income the tax benefit that she received for itemizing her deductions.