All categories

3 years ago

Suppose the consumption function is c = $200 + 0.85yd. if disposable income is $400, consumption is

2 answers:

8 0

Given the consumption equation of c= 200 + 0.85yd, and the disposable income of $400, then, then we would get the consumption by substituting the given to the equation:c= 200 + 0.85ydc= 200 + 0.85(400)c= 200 + 340c= 540Therefore, the consumption is $540.

pantera1 [17]3 years ago

3 0

$540 is the answer in this question. The formula of level of consumption is equal to autonomous consumption plus the disposable income multiplied by the MPC;
Disposal income = $400
MPC = .85YD
Autonomous consumption = $200

So the solution for this question is

.85 × 400 + 200 = 540.

You might be interested in

PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08.

Nezavi [6.7K]

Answer:

The after-tax cost of debt is 8.22%

Explanation:

The cost of debt is the actual cost of a business to raise debt finance. Yield to maturity is the cost of debt of a bond.

calculate the YTM as follow

Coupon = $1000 x 7.25% x 6/12 = $36.25

Number of periods = 9 yeas x 12/6 = 18 periods

Use the financial calculator as below

2nd I/Y 2, FV 1000, PMT 36.25, PV -754.08, N 18, CPT I/Y

Yield to maturity = 11.7499%

Now calculate the after tax YTM

YTM ( after tax ) = 11.7499% x ( 1 - 30% )

YTM ( after tax ) = 8.22%

3 0

3 years ago

Belle Corp. has a selling price of $56 per unit, variable costs of $46 per unit, and fixed costs of $77,000. What sales revenue

Nikitich [7]

Answer:

Break-even point (dollars)= $431,200

Explanation:

Giving the following information:

Selling price= $56 per unit

Unitary variable costs= $46

Fixed costs= $77,000

<u>To calculate the break-even point in sales, we need to use the following formula:</u>

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 77,000 / [(56 - 46) / 56]

Break-even point (dollars)= $431,200

7 0

3 years ago

On January 1, 2017, Columbia Corp. changed its inventory method to FIFO from LIFO for both financial reporting purposes. The cha

Phoenix [80]

Answer:

b) income statement as a $2,320,000 cumulative effect of accounting change

Explanation:

Base on the scenario been described in the question, The change in inventory steps to FIFO from LIFO which made an increase in Inventory should be recorded in the retained earnings statement as a $2,320,000 addition to the beginning balance. Option b is the answer

5 0

3 years ago

"All three levels are required to run an organization or a business smoothy"Justify the statement.

Reika [66]

Answer:

"All three levels are required to run an organization or a business " according to my point of view it is true without anyone levels (sector) business or organization not imagine to run

5 0

3 years ago

Ownership of retail outlets may be necessary if: a. products are expended in consumption. b. products are inexpensive. c. the pr

balu736 [363]

Answer:

E. The required standards of after-sales service for complex products are to be maintained.

Explanation:

The standard of after sale service is necessary in a case like this because after sales service is said to be all you need to know regarding or concerning the product you bought or the services that has been rendered to you.

In as much as a market can be any arrangement where buying and selling is been done and the online platform or medium is pulling through in a lot of sales in recent times, retail outlets show not to be always necessary but sometimes can be necessary in a critical case such as the above scenario. Here, the required standards of after sales services for some products which are complex is to be maintained, retail outlets are said to be possibly necessary.

7 0

4 years ago