Venus company has developed the following flexible budget formula for annual indirect labor cost:
total annual cost = $12,000 + $0.25 per unit
operating budgets for the current month are based on 6,000 units.
indirect labor costs included in this monthly planning budget are

a. $1,250 b. $2,500 c. $3,200 d. $13,250

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease