Answer:
The APC before change in disposable income was 0.75.
Explanation:
The average propensity to consume shows the part of income that is is consumed. It can be calculated as the ratio of total disposable income to total consumption.
The disposable income is given as $200 billion, the consumption level is $150 billion, the savings level is $50 billion.
Average propensity to consume is
= 
= 
= 0.75
So, the average propensity to consume is 0.75.
At Moss’ target net income the sales revenue will be $227, 500
<u>Solution:</u>
Sales revenue required to attain target net income of $35,000 will be as follows,
Fixed Cost of $56,000 + target net income of $35,000 / Contribution margin ratio of 40% = $227, 500
$227, 500 - Most must generate sales of $227,500 to earn a net income of $35,000
Answer:
E. Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.
Explanation:
The journal entry is as follows
Cost of goods sold Dr $839,300
To Finished goods inventory $839,300
(Being the cost of goods sold is recorded)
The computation is shown below:
= Beginning balance of finished goods inventory + transferred of goods completed - ending balance of finished goods inventory
= $160,500 + $837,000 - $158,200
= $839,300
Answer:
Planning.
Explanation:
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Hence, planning is an attempt to develop organizational objectives, goals, and forecasting of consumer demands within the criteria set by product, production process and distribution methods i.e within the intermediate range of its capacity.
"An effort is only useful in improving motivation levels in employees with specialized jobs" is correct regarding expectancy theory.
<h3>What is expectancy theory?</h3>
Victor Vroom of the Yale School of Management put forth the expectation hypothesis in 1964. According to the expectation theory, a person's motivation is determined by their level of desire for a reward, their assessment of the likelihood that their efforts will result in the expected performance (Expectancy), and their conviction that their efforts will pay off once they meet their expectations (Instrumentality).
Expectancy is the conviction that stronger efforts will yield better results. Expectations are affected by things like having the necessary skills to do the job, having access to the resources you need, being able to receive the information you need, and receiving the necessary support to get the task done.
Learn more about expectancy theory here:
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