-Based Upon the Above Table, If Disposable Income Is $400

question 240

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable income } \\\text { (billions of dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure } \\\text { (billions of dollars) }\end{array} \\\hline 400 & 450 \\\hline 600 & 600 \\\hline 800 & 750 \\\hline 1000 & 900 \\\hline 1200 & 1050 \\\hline\end{array}$$
-Based upon the above table, if disposable income is $400 billion, saving equals

• A) $0 billion.
• B) $100 billion.
• C) -$50 billion.
• D) $50 billion.

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Definitions:

Salespersons

Individuals who sell products or services for a company, often working on commission and responsible for generating revenue for the business.

Direct Materials Used

The raw materials directly utilized in manufacturing a product, which are a component of the cost of goods sold.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, rent, and salaries for non-direct labor.