Refer to Table 9.1 for the Following Questions

question 75

Multiple Choice

Refer to Table 9.1 for the following questions.
Table 9.1

-Refer to Table 9.1. Given the consumption schedule in the table, the marginal propensity to save is:

• A)0.3.
• B)0.4.
• C)0.5.
• D)0.6.

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Definitions:

Unit Product Cost

The total cost associated with producing one unit of product, including materials, labor, and overhead.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume.

Variable Costing

Accounting practice that integrates only variable cost elements of production (direct materials, direct labor, and variable manufacturing overhead) into the valuation of products.

Net Operating Income

The total profit of a company derived from its normal business operations, excluding expenses and revenues from non-operating activities.