Setting up a machine to change from producing one product to another is an example of a

Here is a consumption function: C = C0 + MPC(Yd). If consumption is $2,000, MPC =0.75, and disposable income is $2,000, what doe

Hunter-Best [27]

Answer:

$500

Explanation:

$2,000 = Co + 0.75 x $2,000

$2,000 = Co + $1,500

Co = $500

Autonomous consumption is consumption that would occur even if a person earns zero income. This consumption isn't dependent on the level of income.

MPC is the marginal propensity to consume. It represents the proportion of disposable income that is spent on consumption.

Disposable income is income less taxes.

I hope my answer helps you

8 0

3 years ago

Capital budgeting is the process of analyzing: Group of answer choices Cash outflows only. Investments with certain outcomes onl

yanalaym [24]

Answer:

Long-term investments.

Explanation:

Capital budgeting can be regarded as process that is been utilized by business in determining the type proposed fixed asset purchases that need to be declined or should be accepted. This process helps in creating quantitative view as regards the proposed fixed asset investment, so that rational basis to make make a judgment can be surfaced. It should be noted that Capital budgeting is the process of analyzing Long-term investments.

6 0

3 years ago

Taunton's is an all-equity firm that has 155,500 shares of stock outstanding. The CFO is considering borrowing $287,000 at 7 per

Stels [109]

Answer:

a. 1,821,571

Explanation:

Repurchase of shares = 24,500 shares

Share price per share = $287,000/24,500 = $11.7143

Value of the firm = 155,500*11.7143 = $1,821,571

4 0

3 years ago

Establishing an accounts receivable billing policy and procedure includes determining the

antoniya [11.8K]

In terms of establishing an account receivable billing policy and procedure includes the determining or knowing the number the days that has been done between billings because this is essential to know if the policy is upheld and proper procedures is being done.

4 0

4 years ago

Help ASAP Please! Accounting class! Lorge Corporation has collected the following information after its first year of sales. Sal

frez [133]

Answer:

Lorge Corporation

Contribution margin for the current year

= $315,000 ($3 per unit)

Contribution margin for the proposed year = $346,500

Fixed costs for the current year = $473,100

Break-even units = 157,700 units

Break-even sales dollars = $2,365,500

Explanation:

a) Data and Calculations:

Sales revenue = $1,575,000

Sales units = 105,000 units

Sales price per unit = $15 ($1,575,000/105,000)

Total Variable Fixed

Selling expenses = $250,000 $100,000 (40%) $150,000 (60%)

Direct materials $606,100 606,100

Direct labor $250,000 250,000

Administrative expenses $270,000 54,000 (20%) 216,000 (80%)

Manufacturing overhead $357,000 249,900 (70%) 107,100 (30%)

Total costs $1,733,100 $1,260,000 $473,100

Contribution margin for the current year = $315,000 ($1,575,000 - $1,260,000)

= $3 per unit

Unit sales = 115,500 (105,000 * 1.1)

Sales revenue = $1,732,500

Variable costs 1,386,000 ($15 - $3)

Contribution margin for the proposed year = $346,500 ($3 * 115,500)

Fixed costs for the current year = $473,100

Break-even units = $473,100/$3 = 157,700 units

Break-even sales dollars = $473,100/0.2 = $2,365,500

6 0

3 years ago