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Question - Income statements for three companies are provided below:
Company A Company B Company C
Sales (10 units) $600 $600 $600
Less variable costs 400 250 0
Less fixed costs 100 250 500
Net income $100 $100 $100
a) Prepare new income statements for the firms assuming each sells one unit less (i.e. each firm sells 9 units)
b) Briefly - in 350 words or more - describe the effect of cost structure on profitability, including recommendations for each company given the current economic environment, as you understand it.
martinez companys relevant range of production is 7500 units to 12500 units. when it produces and sells 10000 units its
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H owns 50% of the stcok of Y corporation and has a basis for that stock of $25,000. His wife W owns the remaining 50% of the stock at a basis of $25,000. H has all his stock redeemed for its fair market value of $250,000. What is H's tax treatment..
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