Iyana's Pizzas is a takeout-only pizza parlor servicing the college campus of Urbana that specializes in vegan pizzas. Iyana's small shop has barely enough room for customers to stand and wait, let alone the five pizza ovens necessary to keep up with the hungry student customers. Iyana signed a lease renting both the five ovens and the storefront for the next year. Due to the terms of the lease and the building's size constraint, Iyana is unable to change the store's number of pizza ovens in the short run.

Use the table below to answer the next three questions. The below table displays the production schedule for Great Balls of Fire, a food truck that sells flaming meatballs. Great Balls of Fire has a lease on the truck itself that costs $1200 per week that must be paid whether or not the food truck produces and sells any meatballs. They may hire up to three workers to produce and sell the meatballs, workers cost $600 per week. The production schedule shows you how many meatballs would be produced with the varying levels of employees. Employees Meatballs Fixed Costs Variable Cost Total Cost Average Variab Cost 0 0 0 1 300 2 500 3 600 Completely fill out the table, please round all answers to the nearest cent. Do not enter any commas, dollar signs, or units (Ex. If your calculator says 12.376, just enter 12.38.) If your answer is an even dollar amount, you don't need to include the cents (Ex. you may enter 10 instead of 10.00)

Aero Motorcycles is considering opening a new manufacturing facility in Fort Worth to meet demand for a new line of solar charged motorcycles​ (who wants to ride on a cloudy day​ anyway?) The proposed project has the following​ features; ​• The firm just spent​ $300,000 for marketing study to determine consumer demand​ (@ t=0). ​• Aero Motorcycles purchased the land the factory will be built on 5 years ago for​ $2,000,000 and owns it outright​ (that is, it does not have a​ mortgage). The land has a current market value of​ $2,600,000. ​• The project has an initial cost of​ $20,902,178 (excluding​ land, hint: land is not subject to​ depreciation). ​​• If the project is​ undertaken, the company will realize an additional​ $8,000,000 in sales over each of the next ten years.​ (i.e. sales in each year are​ $8,000,000) ​• The company’s operating cost​ (not including​ depreciation) will equal​ 50% of sales. ​• The company’s tax rate is 35 percent. ​• Use a​ 10-year straight-line depreciation…

Brett started a new construction business in April 2020. In connection with the new business, he purchased a new backhoe for $60,000 in June 2020 and immediately placed it in service. The new business is struggling and expecting to show a loss for 2020. Brett is considering expensing the $60,000 cost of the backhoe under §179 on the 2020 tax return. Brett has been awarded a large project for 2021, and will show a substantial profit (over $100,000) for the year ending 12/31/2021. Your response must fully address the following: Evaluate the appropriateness of Brett’s plan. Explain your position. How could changes in tax law affect the appropriateness of Brett's plan?