Answer: A.) Contribution Margin analysis
Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.
Answer:
The MPC is 0.8
The multiplier or k is 5
The increase in income would be $20 million.
Explanation:
The marginal propensity to consume (MPC) is the proportion of increased disposable income that consumers spend. It is a metric to quantify the induced consumption and how an increase in consumer spending occurs as a result of increase in income.
MPC is calculated as follows,
MPC = Change in consumer spending / change in income
MPC = 240 / 300
MPC = 0.8 or 80%
To calculate the multiplier, we simply use the following formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.8)
k = 5
So, the expenditure multiplier for the economy would be 5.
To calculate the increase in income, we will multiply the investment amount by the expenditure multiplier.
Income increase = 4000000 * 5
Income increase = $20000000 or 20 million
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<span>STOP listening to financial media and market “experts.” They only magnify your fear.Learn the nature of the markets you invest in. Develop a clear understanding of how they work.Determine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?Set a portfolio allocation that fits your needs.Rebalance it religiously to manage your risk and potential return goals.Maintain enough cash reserves. This will help your long-term assets be focused on long-term objectives.<span>Revisit steps 1 thru 7 religiously to adjust as your life unfold.</span></span>
Answer: D. Vanity and egotism
Explanation: Vanity and Egoism advert is a type of advertisement used for highly expensive and conspicuous goods so that it can appeal to peoples vanities and ego.
Some of those products are purchased to show class and societal status as well as to display flamboyant life style. Such product could be an identity, so the logo or brand name of such products are placed where it will be clearly visible. For example a polo with a Gucci logo placed on the chest.
Answer: 24.10%
Explanation:
The quoted annual rate of return that will be expected to be earned if one buys the bonds and company calls them when possible will be calculated thus:
Call price = 1160
Coupon rate = 16%
Number of compounding period per year = 1
Interest per period = 1000 × 16% = 160
Bond price = 873
Number of years to sell = 4
NPER = 4
Quoted annual rate of return will be:
= Rate(NPER, PMT, -PV, FV)
= Rate(4160, -873, 1160)
= 24.10%
