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: Controlling
Explanation: Controlling is the function of management that sets the standards for the performance, then compares the actual performance with the standards set and take corrective action if there comes any discrepancy.
In the given case, Wendy is monitoring the tasks performed by others and is also taking corrective actions. Thus, we can conclude that wendy is performing controlling function.
Answer:
price variance $(22,800.00) UNFAVORABLE
Explanation:
std cost $6.00
actual cost $9.00
quantity 7,600
difference $(3.00)
price variance $(22,800.00)
We calculate the actual cost by dividing total cost by the lbs purchased:
68,400/7,600 = 9
Because the diference is negative, the variance is unfavorable.
Each pound cost more than it was planned.
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