Annual tax cost of increase defficiency

Reference no: EM13258179

You own a restaurant and just negotiated a decrease in the cost of steaks by25 cents a steak. You normally sell 300,000 steak dinners ayear. Your business pays an average of 30 percent in income taxes. What is the annual tax cost of this increase defficiency?

(a) $22,500.

(b) $52,500.

(d) $210,000.

Reference no: EM13258179

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