Refer to the Consumption Schedule Above

question 108

Multiple Choice

Refer to the consumption schedule above. The marginal propensity to consume is:

• A) .60
• B) .75
• C) .80
• D) .20

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Definitions:

Service Department

A division within a company that provides support services to the company's main operations, such as IT, maintenance, or human resources.

Sales Department

The division of a business that is responsible for selling products or services and generating revenue.

Expense Allocation

The process of distributing or assigning costs to different departments, projects, or cost centers within an organization.

Profit Margin

A financial metric used to assess a company's profitability by calculating the ratio of net income to revenue.