Answer: C. Favorable endorsements from customers' peers
Explanation: Fine and funky's objective to build trust and loyalty among its target group (women aged 35-55 years) will only be achieved within it's target group. Hence, getting a favourable endorsement from her customers' peers will help her achieve this.
Answer: Marginal propensity to consume = $0.60
Spending multiplier = $2.5
Explanation: The MPC can be calculated using following equation :-
= 0.60
Similarly, we can calculate spending multiplier as :-
= $2.5
Answer:
The 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Explanation:
The non-collectible accounts expenses on its Year 2 income statement is shown below:
= Ending balance + write off balance - opening balance
= $6,000 + $7,200 - $3,900
=$9,300
The accounts receivable is not to be considered because we have to find out the uncollectible accounts expense, so the account receivable balance should not be taken in the computation part.
Hence, the 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
