If a Family's Annual Disposable Income Rose from $60 000

question 87

Multiple Choice

If a family's annual disposable income rose from $60 000 to $65 000 and their desired consumption expenditures rose from $50 000 to $54 000, it can be concluded that the family's

• A)marginal propensity to consume is $800.
• B)marginal propensity to save is 0.8.
• C)average propensity to consume is 0.8.
• D)marginal propensity to consume is 0.8.
• E)average propensity to save is 0.8.

Make decisions on resource allocation based on contribution margin and constrained resources.

Understand the principles of cost allocation to products in joint production processes.

Analyze the financial impact of further processing products beyond the split-off point.

Calculate minimum selling price for special orders and its impact on profitability.

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Definitions:

CEO

Chief Executive Officer; the highest-ranking person in a company or organization, responsible for making overarching decisions.

Naming a Successor

The process of identifying and appointing an individual to take over a role or position after the current holder leaves or retires.

Key Executive

A high-ranking individual in a company who has significant responsibility for managing an essential part of the business.

Operating Performance

An analysis of a company's efficiency and effectiveness in managing its resources and operations, often assessed through metrics like return on investment, profit margins, and productivity levels.