In order for Millard’s Department Store to meet their
immediate needs, they should utilize the short term financing. Short term
financing is defined as a way of business financing by means of obtaining
finance that is usually in a term of one year or less than one year. It is
usually for about 4-6 months.
His taxable income last year was -$276.11. He has a negative amount of taxable income because the exemption and the allowed deduction exceeds his annual gross income. Annual gross income must be decreased by the allowed deduction and the exemption to find the taxable income amount of a person. Taxable Income = Annual Gross Income - (Deduction + Exemption)
Answer: declines continually as output increases.
Explanation:
The Fixed costs are are constant and do not change throughout the production process. This means that on Average, they will keep dropping as more output is produced.
The formula for Average Fixed Costs;
Average Fixed Costs = Fixed Costs/ Output
From the formula you will see that as output increases, the Average Fixed Cost reduces because the Fixed Costs will remain the same while being divided by a larger number each time output increases.