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Leokris [45]
3 years ago
11

a. Consumption schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis i

s (Click to select) . These variables are (Click to select) related. b. Saving schedule The variable on the vertical (y) axis is (Click to select) and the variable on the horizontal (x) axis is (Click to select) . These variables are (Click to select) related. c. What is the fundamental reason that the levels of consumption and saving in the United States are each higher today than they were a decade ago

Business
1 answer:
serg [7]3 years ago
4 0

Answer:

a. Consumption schedule

The variable on the vertical (y) axis is<u> Consumption</u> and the variable on the horizontal (x) axis is <u>disposable income</u> .

These variables are <u>directly</u> related.

On the Consumption schedule, the variables on the y axis are the different levels of consumption whilst the variables on the x are amounts of disposable income.

Consumption and disposable income are directly related because when the amount of disposable income increases, the amount that consumers can spend will increase as well as it comes from the disposable income that a consumer has.

b. Saving schedule

The variable on the vertical (y) axis is<u> Saving</u> and the variable on the horizontal (x) axis is <u>disposable income</u> .

These variables are <u>directly</u> related.

On the Saving schedule the x axis which is for the independent variable is the Disposable income whilst the dependent variable on the y axis is for Savings.

Savings and Disposable income are directly relate because when a person has more money after taxes (disposable income), they will be able to save more money.

c. Real GDP and disposable income are higher.

The Real GDP of the United States as well as disposable income have increased over the past decade which means that people are able to both consume and save more s shown above.

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The direct materials and direct labor budgets provide information for preparing the:________a) production budget.b) sales budget
Korolek [52]

Answer:

C.) Cash budget.

Explanation:

As the name sounds is exactly what it directly entail; as it explains the direct input and output flow pattern of cash in a said organisation or firm. And in most cases, it is seen to access these funds and their usage pattern.

In this case, it can know and give heads up on when their is cash shortage or when a form does not have enough liquidity funds to run it. That is why here, direct and labour budgets are parts of what makes up the cash budget.

6 0
2 years ago
Scotch Inc. arranged a $7,000,000 revolving credit agreement with a group of banks. The firm paid an annual commitment fee of 0.
baherus [9]

Answer:

$575,000

Explanation:

Data provided:

The total amount for the credit agreement = $7,000,000

The amount borrowed by the firm = $6,000,000

The annual commitment fee for the unused balance = 0.5%

Prime rate of interest = 8%

Interest paid above the prime rate = 1.5%

Now,

the unused amount = $7,000,000 - $6,000,000 = $1,000,000

The amount of commitment fees paid

= total unused amount × Annual commitment fees

= $1,000,000 × 0.005

= $5000

Total interest paid on the borrowed amount

= Amount borrowed × (prime rate + additional rate)

= $6,000,000 × ( 0.08 + 0.015)

= $6,000,000 × 0.095

= $570,000

Hence,

the total dollar annual cost of the revolver

=  interest paid on the borrowed amount + amount of commitment fees paid

= $570,000 + $5000

= $575,000

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2 years ago
Valuation Using an Income Statement Multiple JAKKS Pacific Inc., a toy manufacturer, reports net income for the recent twelve mo
mash [69]

Answer:

$16.27

Explanation:

For computing the intrinsic value, first we have to compute the earning per share which is shown below:

Earning per share = (Net income) ÷ (Number of shares outstanding)

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Now the intrinsic value would be

= Earning per share × P/E ratio

= 0.734 × 22.17

= $16.27

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Ramon funds small businesses that he believes have the potential to grow large. when these companies are still in their initial
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