Answer:
Ignacio would have to fire some of his full time workers and hire contingent workers.
Contingent workers are independent contractors. So Ignacio wouldn't be responsible for paying employment taxes since contingent workers are responsible for handling their own taxes.
Answer:
To calculate the Federal Unemployment Tax Act (FUTA) taxes that the employer must pay we have to multiply Aaron's salary times FUTA tax rate:
$24,900 x 0.6% = $149.40
To calculate the State Unemployment Tax Act (SUTA) taxes that the employer must pay we have to multiply Aaron's salary times SUTA tax rate:
$9,900 x 4.7% = $465.30
I think its all the above except for they might be trying to trick you because at sixteen a guardian or parent has to sign aswell.
Answer: 16.33%
Explanation:
With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).
The formula is,
Er = Rf + b(Rm - Rf)
Where,
Er is expected return
Rf is the risk free rate
b is beta
Rm - Rf is the Market Premium
Er = 3.87% + 1.38(9.03)
= 3.87% + 12.4614%
= 16.33%
The model accounts for inflation by including the risk free rate which is already adjusted for inflation.
Answer:
a. $140,000 decrease
Explanation:
![\left[\begin{array}{cccc}Year&continued&discontinued&differential\\Sales&680,000&0&-680,000\\variable \: cost&-540,000&0&540,000\\contibution&140,000&0&-140,000\\fixed \: cost&-145,000&-145,000&0\\net \: income&-5,000&-145,000&-140,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DYear%26continued%26discontinued%26differential%5C%5CSales%26680%2C000%260%26-680%2C000%5C%5Cvariable%20%5C%3A%20cost%26-540%2C000%260%26540%2C000%5C%5Ccontibution%26140%2C000%260%26-140%2C000%5C%5Cfixed%20%5C%3A%20cost%26-145%2C000%26-145%2C000%260%5C%5Cnet%20%5C%3A%20income%26-5%2C000%26-145%2C000%26-140%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The fixed cost would not be eliminated entirely and we have no information of any partial decrease. so the differential analysis shows a decrease in 140,000 in the net income if product T is discountinued
