-According to the Data in the Above Table, at What

question 391

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable } \\\text { income } \\\text { (thousands of } \\\text { dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure } \\\text { (thousands of dollars) }\end{array} \\\hline 200 & 225 \\\hline 300 & 300 \\\hline 400 & 375 \\\hline 500 & 450 \\\hline\end{array}$$
-According to the data in the above table, at what level of disposable income is savings negative?

• A) 400
• B) 200
• C) 300
• D) Never because saving cannot be negative.

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Definitions:

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs expected to be incurred in completing, transporting, and selling it.

Damaged Goods

Items that are broken, defective, or otherwise impaired, often resulting in reduced value or the need for disposal.

Days' Sales in Inventory

A financial metric that indicates the average number of days it takes for a company to turn its inventory into sales.

Erratic Changes in Costs

Sudden and unpredictable fluctuations in the cost of materials, labor, or other operational expenses.