The following monthly data are taken from Ramirez Company at July 31: Sales salaries, $640,000: Office salaries, $128,000; Federal income taxes withheld, $192,000; State Income taxes withheld, $43,000; Social security taxes withheld $47,616; Medicare taxes
withheld, $11,136; Medical insurance premiums, $15,500; Life insurance premiums, $12,500; Union dues deducted, $9,500; and
Salaries subject to unemployment taxes, $67,000. The employee pays 40% of medical and life insurance premiums. Assume that FICA
taxes are identical to those on employees and that SUTA taxes are 5.4% and FUTA taxes are 0.6%.
1&2. Using the above information, complete the below table and prepare the journal entries to record accrued payroll and cash
payment of the net payroll for July.

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.