Indicate Which of the Following Statements Concerning the Following Tax

question 10

Multiple Choice

Indicate which of the following statements concerning the following tax rate structures is/are correct.
$\begin{array}{rr}& \text {When Income } & \text { Total Tax } \\& \underline{\text { Equals }}& \underline{\text { Equals }}\\ \text { Structure \#1 } &10,000 & 600 \\&100,000 & 5,000 \\\\ \text { Structure \#2 } &15,000 & 900 \\&75,000 & 4,500 \\\\ \text { Structure \#3 } &13,000 & 975 \\&86,000 & 6,600\end{array}$
I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive

• A)Only statement I is correct.
• B)Only statement III is correct.
• C)Statements I and II are correct.
• D)Statements II and IV are correct.
• E)Statements I, II, and IV are correct.

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Definitions:

Total Profit

The overall financial gain achieved from a business activity after subtracting all costs and expenses.

Finishing Department

The final production stage in manufacturing where products undergo finishing processes, such as painting, polishing, or packaging, to prepare them for sale or distribution.

Labor Hours

The total number of work hours spent by employees on a given task or project.

Objective Function

Describes the formula or model that a decision-making process seeks to optimize.