Because dividends are considered to be a return of premium I hope this helps ya out
Answer:
Sales Revenue = 441,000
COGS 4,900 x 38 = 186,000
Gross Profit 254.800
Selling variable 4,900 x 2 = 9,800
Selling and administrative 65,200
Net Income 179,800
Explanation:
Sales
4,900 x 90
COGS
Fixed 78,000/6,000 = 13
Variables 25
Unit cost 38
4,900 x 38 = 186,200
Selling variable
4,900 x 2 = 9800
Based on the percentage spent out of their marginal income, the country where fiscal policy would be more effective is<u> Country A </u>
The country where fiscal policy would be more effective is the one that has a higher multiplier.
Multiplier is calculated as:
<em>= 1 / ( 1 - Marginal propensity to consume)</em>
Marginal propensity to consume is the percentage spent out of marginal income.
Country A multiplier:
= 1 / ( 1 - 80%)
= 5
Country B multiplier:
= 1 / ( 1 - 60%)
= 2.5
In conclusion, fiscal policies would be more effective in Country A.
<em>Find out more at brainly.com/question/17012705. </em>
