Last Year in Candamica,consumption Expenditure Was $20 Billion,interest,rent,and Profit Were

question 168

Multiple Choice

Last year in Candamica,consumption expenditure was $20 billion,interest,rent,and profit were $2.5 billion,government expenditure on goods and services was $7 billion,net exports of goods and services was $5 billion,and investment was $2 billion.Hence total expenditure was

• A)$24.5 billion.
• B)$34.5 billion.
• C)$36.5 billion.
• D)$34 billion.
• E)undetermined without information about imports.

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Definitions:

Contribution Margin Ratio

A financial metric that shows what portion of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance premiums.

Break-Even Point

The sales level at which a business neither makes a profit nor incurs a loss.

Variable Expenses

Expenses that vary directly with the amount of production or the degree of business activity.