Answer:The marginal propensity to consume (MPC) is 0.65
The multiplier or k = 2.85714 rounded to 2.86
Explanation:
The MPC pertains to the fraction of additional disposable income that consumers choose to spend. It is used to gauge the consumption increase driven by rising income.
MPC can be calculated as follows,
MPC = Change in consumption / change in income
MPC = 0.65 / 1
MPC = 0.65
To derive the multiplier, we apply this formula,
Multiplier or k = 1 / (1 - MPC)
k = 1 / (1 - 0.65)
k = 2.85714 rounded to 2.86
Answer:
d. A higher level of risk corresponds to a smaller potential investment.
Explanation:
Regarding speculation, risk is defined by the variability of returns. The discrepancy between expected outcomes and actual results is referred to as risk. In this instance, Sandy believes there exists a positive relationship between the likelihood of risk and returns. For instance, if the risk is elevated, the chance of achieving returns rises. Conversely, reduced risk implies lower chances of earning returns.
Sandy prefers to assert that with elevated risk comes lesser investment possibilities, since the fluctuation of returns is substantial. This suggests that investors may aim for guaranteed returns rather than uncertain but potentially larger yields. In the realm of investments, it is a common question; some may agree that higher risk leads to lower maximum investments.
Thus, the answer is option D.
If a statement claims that greater risk leads to larger potential returns, it does not guarantee that the investor will indeed realize larger returns with their investments. The chances might be present for larger earnings, but obstacles also accompany such opportunities.
Answer:
Indirect manufacturing cost= $22100
Explanation:
The following data is provided:
Direct materials $ 6.20
Direct labor $ 3.10
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 14,000
Sales commissions $ 1.50
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,500
A total of 6,000 units have been produced.
To find the indirect manufacturing cost: variable overhead plus fixed manufacturing overhead is calculated as 1.35 * 6000 + 14000 = $22100.
a. Using FIFO, the Cost of Goods Sold (COGS) is $17,640, while the Ending Inventory equals $12,960.
b. Under LIFO, COGS totals $19,160, while the Ending Inventory is $11,440.
c. The Weighted Average COGS is $18,360, and the Weighted Ending Inventory is $12,240.
For Cortez Company, the inventory particulars include initial stock of 100 units from $60/unit amounting to $6,000, first batch purchase of 150 units at $68 each totaling $10,200, and a second batch of 200 units at $72 each totaling $14,400, culminating in a total of 450 units valued at $30,600.
Queries about how COGS and Ending Inventory figures manifest under various methods (FIFO, LIFO, and Weighted Average) can be addressed based on those computations.
