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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

During 2018, TRC Corporation has the following inventory transactions.

Soloha48 [4]

Answer:

Results are below.

Explanation:

Giving the following information:

Jan. 1 Beginning inventory 48 $40 $1,920

Apr. 7 Purchase 128 42 5,376

Jul. 16 Purchase 198 45 8,910

Oct. 6 Purchase 108 46 4,968

For the entire year, the company sells 427 units of inventory for $58 each.

Ending inventory units= 482 - 427= 55

1)

Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units remaining in inventory.

Ending inventory= 55*46= $2,530

COGS= 48*40 + 128*42 + 198*45 + 53*46= $18,644

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,644= $6,122

2)

Under the LIFO (last-in, first-out) method, the ending inventory is calculated using the cost of the firsts units remaining in inventory.

Ending inventory= 48*40 + 7*42= $2,214

COGS= 108*46 + 198*45 + 121*42= $18,960

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,960= $5,806

3)

First, we need to calculate the weighted-average cost:

weighted-average cost= (40 + 42 + 45 + 46) / 4= $43.25

Ending inventory= 55*43.25= $2,378.75

COGS= 427*43.25= $18,467.75

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,467.75= $6,298.25

6 0

3 years ago

The _____ is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up

____ [38]

The answer is the total budget cost. It is the one responsible of the expense that the company needs and the estimated expense that they had used that may be of use as their basis and for the their future period.

7 0

3 years ago

Peterson Manufacturing purchased inventory for $ 4,900 and also paid a $310 freight bill. Peterson Manufacturing returned 35% o

ad-work [718]

Answer:

$2,443.95

Explanation:

Given:

Purchased inventory = $4,900

Freight bill paid = $310

Manufacturing returned = 35%

Purchase discount = 33%

Now,

The value of Purchase returns = 35% of $4,900

= 0.35 × $4,900

= $1,715

Therefore,

The Net purchases = Purchased inventory - Purchase returned

= $4,900 - $1,715

= $3,185

Also,

Discount = 33% of $3,185

= $1,051.05

Therefore, the final cost of inventory = Net purchases - Discounts + Freight

= $3185 - $1051.05 + $310

= $2,443.95

3 0

4 years ago

Below are transactions for Lobos, Inc., during the month of December. Calculate the amount of revenue to recognize in December.

Neporo4naja [7]

Answer:

Revenue recognized in Dec= $3200

Explanation:

Lets first understand the criteria for revenue recognition. According to the accruals concept of accounting, an entity is supposed to record revenues and expenses as soon as they are earned and incurred. An entity shouldn't wait until the revenue is received and expenses are actually paid. The accruals concept of accounting is also based on the matching principle which requires entities to match and record expenses with the revenue of the period in which they occur. Considering the two concepts mentioned above, we may classify these transactions for revenue recognition as follows;

a. Receipt of $1200 cash:

In this case Lobos Inc. has received the cash in advance and the services against this payment will be rendered next month, therefore, this transaction doesn't imply an earned revenue rather it's a liability for Lobos Inc until the services are actually rendered. No revenue is recognized in December.

b. Perform $900 of services:

Lobos Inc. will provide services to this customer and will receive payment in next month, however the services have been provided which implies Lobos Inc has earned the revenue, though not received it yet but still following the accruals concept, Revenue is recognized in December.

c. Perform $2300 of services:

Similarly, Lobos Inc. will render services and will receive the payment against these services in the month of Dec, therefore, Lobos Inc can recognize revenue in December.

7 0

3 years ago

6. The Spliced Barclays USAgg Float Adj Ix is the complete bond index against which this fund can be judged. What

romanna [79]

Answer:

Sector bets

Explanation:

Vanguard funds are not a true representation of indexes they are supposed to track because of the occurrence of sector bets.

Sector bet is when the fund manager for the Vanguard fund chooses to invest in parts of the fixed income universe. He feels this will yield good returns in the future.

So what makes up the fund portfolio is different from the index itself, and this causes different investment returns.

A way to make Vanguard funds more accurate is to tighten volume of different types of bonds that the manager can purchase. This will reduce deviation from index figures

6 0

3 years ago