Rebecca is one of the few reliable programmers of her organization who is authorized to work on a closed source project. The pro
1 answer:
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Answer:
option (c) $25 million
Explanation:
Data provided in the question:
The marginal propensity to consume in Frugalia, MPC = 0.60
Increase in spending = $10 million
Now,
The total increase in income
= × Increase in spending
on substituting the respective values, we get
= × $10 million
= × $10 million
or
= 2.5 × $10 million
or
= $25 million
Hence,
The answer is option (c) $25 million
Answer:
Capital turnover = 2.5 times
Explanation:
given data
Sales = $2,000,000
Operating income = $400,000
Total assets = $800,000
Current liabilities = $120,000
Target rate of return = 13%
Weighted average cost of capital = 6%
to find out
Portland Porcelain Works Coffee Mug Division capital turnover
solution
we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets
so
Capital turnover = ......................1
put here value
Capital turnover =
Capital turnover = 2.5 times