3. LearnCo is aware that its labor prices for the Gluing part of the manufacturing process may...
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Question:
3. LearnCo is aware that its labor prices for the Gluing part of the manufacturing process may increase to $15.00 per hour due to changes in minimum wage laws in its state. If this occurs, what will be the effect on LearnCos income before income tax?
a. LearnCo will still have positive income before income tax if Gluing labor costs increase to $15.00 per hour.
b. If Gluing labor costs increase to $15.00 per hour, LearnCo will break even (i.e., the company will have zero income before income tax).
c. LearnCo will have a loss before income tax if Gluing labor costs increase to $15.00 per hour.
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