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Nikolay [14]
3 years ago
6

Hooray! You hit your sales number for the quarter and are awarded a $3,000 bonus. You spend $2,100 on a new living room TV and e

ntertainment system and save the rest. What is your MPC and MPS
Business
1 answer:
kotykmax [81]3 years ago
4 0

Answer:

0.7 and 0.3

Explanation:

Data provided in the question

Awarded bonus value = $3,0000

Spending amount on a new living room = $2,100

So by considering the above information , the MPC and MPS is

As we know that

MPC = change in Consumption spending ÷ change in income

        = $2,100 ÷ $3,000

        = 0.7

And, the

MPC + MPS = 1

0.7 + MPS = 1

So, the MPS is 0.3

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Impression management was practised by darren.

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8 0
1 year ago
A company revealed the following figures: Sales revenue $2,240,000 Contribution margin $560,000 Net operating income $410,000 Ho
Alexandra [31]

Answer:

The company's margin of safety in dollars is $1,640,000 .

Explanation:

Margin of Safety is the amount in units or dollars by which sales may fall before a Company starts making a loss.

The first step is to calculate break even point  in dollar sales.

Break even point  in  dollar sales = Fixed Costs / Contribution Margin Ratio

Where,

Fixed Costs = Contribution margin - Operating Income

                    = $560,000 - $410,000

                    = $150,000

Contribution Margin Ratio = Contribution margin ÷ Sales revenue

                                           = $560,000 ÷ $2,240,000

                                           = 0.25

Thus,

Break even point  in  dollar sales = $150,000 / 0.25

                                                       = $600,000

Margin of Safety = Expect Sales - Break Even Sales

                            = $2,240,000 - $600,000

                            = $1,640,000

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3 years ago
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densk [106]

Answer:

D. Bandwagon advertising

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