Given:
ΔY = $5,000, the change in income
ΔS = 50,000 - 54,000 = - 4,000, the change in savings.
By definition,
MPS (Marginal Propensity to Spend) is
MPS = ΔS/ΔY = -4000/5000 = -0.8
The relation between MPS and MPC (Marginal Propensity to Consume) is
MPS + MPC = 1.
Therefore
MPC - 0.8 = 1
MPC = 1.8
Answer:
MPS = 0.8
MPC = 1.8
The answer would be : Proactive strategy
Proactive strategy is carried out to prevent the occurrence of challenging behavior from the society towards the company. Company with proactive strategy tend to do a lot of Corporate social Responsibilities to win the crowd's favor.
Answer:
Sheffield Corp
Retained Earnings Statement for the year ended December 31, 2017:
Net Income $10,400
Retained Earnings, January 1 17,000
Dividends (6,700)
Retained Earnings, December 31 $20,700
Explanation:
Sheffield's statement of retained earnings shows the net income after tax, which is added to the Retained Earnings at the beginning of the period. Then the dividends paid are deducted to arrive at the Retained Earnings at the end of the period. The statement shows the distribution of net income to stockholders.
Answer:
Effect on income= $2,000 decrease
Explanation:
Giving the following information:
Selling price= $10 per unit.
Variable costs are $4 per unit
A move to a larger facility would increase rent expense by $8,000, and allow the company to meet its demand for an additional 1,000 units.
We need to calculate the effect in the income of moving to a larger facility.
Effect on income= total contribution margin increase - increase in fixed costs
Effect on income= 1,000*(10 - 4) - 8,000
Effect on income= $2,000 decrease