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Crazy boy [7]
3 years ago
8

Suppose two successive levels of disposable personal income increases from $16 to $21 billion and the change in consumption spen

ding between these two levels of disposable personal income is $2 billion, then the MPC will equal _____.
Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer: 0.4

Explanation: MPC, that is, marginal propensity to consume is used to quantify the consumption induced. As we know that, MPC is calculated as follows :-

MPC\:=\:\frac{Chane\:in\:consumer\:spending}{change\:in\:income}

MPC\:=\:\frac{2}{21-16}

MPC\:=\:\frac{2}{5}

                 = 0.4

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AleksAgata [21]

Answer:

the full cost of the product per unit if the marketing costs is $3,000 is $7,025.

Explanation:

The cost of the special order will exclude the Fixed manufacturing support as these are common whether the order is accepted or not thus irrelevant. Remember to include the marketing costs as an additional cost.

Calculation of cost of the product :

Direct materials                                $1,825

Direct labor                                         $900

Variable manufacturing support     $1,300

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Conclusion :

Thus, the full cost of the product per unit if the marketing costs is $3,000 is $7,025.

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3 years ago
A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
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Critical Thinking. ...

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