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21.04.2020 •
Business
Five years ago, Bailey purchased 200 shares Big Top, Inc. for $4,000. Bailey recently gifted those shares of stock to his son Barnum. He paid gift tax of $700. The value of the 200 shares of stock on the date of the gift was $2,000. Which of the following statements is correct? Question 15 options: If Barnum subsequently sells the shares of Big Top, Inc. for $4,750, the basis used to calculate his gain or loss will be $4,000. If Barnum subsequently sells the shares of Big Top, Inc. for $4,750, the basis used to calculate his gain or loss will be $4,350. If Barnum subsequently sells the shares of Big Top, Inc. for $1,600, the basis used to calculate his gain or loss will be $2,350. If Barnum subsequently sells the shares of Big Top, Inc. for $1,600, his basis will be $2,700 for any gain or loss.
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Ответ:
Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.