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Anna Is Supported Entirely by Her Three Sons John,James,and Joseph

question 23

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Anna is supported entirely by her three sons John,James,and Joseph who provide for her support in the following percentages: John: 10%,James: 40%,Joseph: 50%
Assuming a multiple support declaration exists,which of the brothers may claim his mother as a dependent?


Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.

Absorption Costing

The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.

Operating Income

A metric that calculates the profits realized from a business's core operations, excluding deductions of interest and taxes.

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