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Question : 71) Consider the following aggregate expenditure function: AE = $300 : 1384371

Economics

 

71) Consider the following aggregate expenditure function: AE = $300 billion + (0.87)Y. Assuming that we have no government, no international trade and desired investment is autonomous and is equal to $56 billion, then which of the following is the correct statement of the consumption function?

A) C = $356 billion + (0.87)Y

B) C = $356 billion + (0.13)Y

C) C = $244 billion + (0.87)Y

D) C = $244 billion + (0.13)Y

E) C = $300 billion + (0.13)Y

72) Refer to Figure 21-3. All points along the 45-degree line represent

A) combinations of desired aggregate expenditure and actual national income where consumption expenditure equals saving.

B) the equilibrium condition that desired aggregate expenditure equals actual national income.

C) levels of actual national income where desired AE is equal to the sum of desired consumption and desired investment.

D) levels of actual national income that occur when autonomous expenditure is increasing at a constant (linear) rate.

E) levels of actual national income where desired saving is equal to zero.

73) Refer to Figure 21-3. Consider the simplest macro model with no government and no foreign trade, and the aggregate expenditure function AE = C + I. If there was zero autonomous expenditure and the marginal propensity to consume was equal to one, then the AE function would be

A) steeper than the 45-degree line.

B) above the 45-degree line at all points.

C) below the 45-degree line at all points.

D) coincident with the 45-degree line.

E) flatter than the 45-degree line.

74) Consider the simplest macro model with demand-determined output, where

A) firms will see an increase in inventories, and they will respond by decreasing output, thereby decreasing actual national income.

B) firms will decrease autonomous investment by $20 billion until equilibrium national income is reached at $900 billion.

C) firms will increase autonomous investment by $20 billion until equilibrium national income is reached at $920 billion.

D) firms will see a decrease in inventories, and they will respond by increasing output, thereby increasing actual national income.

E) actual national income will decrease until equilibrium national income is reached at $900 billion.

75) Consider the simplest macro model with demand-determined output, where

A) firms will see a decrease in inventories, and they will respond by increasing output, thereby increasing actual national income.

B) firms will decrease autonomous investment by $10 billion until equilibrium national income is reached at $890 billion.

C) firms will increase autonomous investment by $10 billion until equilibrium national income is reached at $900 billion.

D) actual national income will increase until equilibrium national income is reached at $900 billion.

E) firms will see an increase in inventories, and they will respond by decreasing output, thereby decreasing actual national income.

76) Refer to Table 21-3. The equilibrium level of national income will be

A) $3000.

B) $3600.

C) $3900.

D) $4000.

E) $4400.

77) Refer to Table 21-3. At the equilibrium level of national income, desired consumption expenditure will be

A) $300.

B) $400.

C) $3900.

D) $3600.

E) $4000.

78) Refer to Table 21-3. At the equilibrium level of national income, desired investment is

A) $100.

B) $4000.

C) $3900.

D) $400.

E) $1000.

79) Refer to Table 21-3. At the equilibrium level of national income, desired saving is

A) $100.

B) $300.

C) $4000.

D) $3900.

E) $1000.

80) Refer to Table 21-3. Suppose this economy is in equilibrium. There is then a significant decline in house prices across the country. The likely effect is

A) autonomous consumption will rise above $300 and equilibrium national income will therefore rise.

B) autonomous saving will fall and equilibrium national income will therefore fall.

C) autonomous saving will rise and equilibrium national income will therefore rise.

D) autonomous investment will rise and equilibrium national income will therefore rise.

E) autonomous consumption will fall below $300 and equilibrium national income will therefore fall.

 

 

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July 1, 2023
    

 

120.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?    

A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

121.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?  A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

122.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross marginA.               $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

123.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?    

A. $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

124.What is the Red and White's contribution margin for this month if 980 units were sold?    

A. $38,000

B. $18,620

C. $24,500

D. $50,000

E. $21,560

125.What is Red and White's net income under absorption costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

126.What is Red and White's net income under variable costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

127.Decko Industries reported the following monthly data: 

Units produced52,000 units

Sales price$33 per unit

Direct materials$1.50 per unit

Direct labor$2.50 per unit

Variable overhead$3.50 per unit

Fixed overhead$234,000 in total

What is the company's contribution margin for this month if 50,000 units were sold?    

A. $1,326,000

 

B. $1,716,000

 

C. $1,275,000

 

D. $1,650,000

E. $1,450,000

128.Assume that the following information was available for Guy Brown Company. How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio? 

Recycled Toner CartridgesOffice SuppliesFurniture

Sales$500,000$700,000$900,000

Variable expenses

Variable production$50,000$140,000$270,000

Variable advertising$5,000$14,000$36,000

Variable shipping$10,000$28,000$72,000

  

A. Recycled toner cartridges has the lowest contribution margin ratio.

B. Furniture has the highest contribution margin ratio.

C. Office supplies has the highest contribution margin ratio.

D. Recycled toner cartridges has the highest contribution margin ratio.

E. Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.

129.Assume that the following information was available for Daylight Enterprises, Inc. Which of the following statements is(are) true with regard to contribution margin ratio? 

Ceiling LightsTabletop LightsStand-Alone Lights

Sales$350,000$175,000$440,000

Variable expenses

Variable production$70,000$19,250$90,000

Variable advertising$10,500$3,500$22,000

Variable shipping $12,000   $14,000   $28,000

  

A. Tabletop lights has the lowest contribution margin ratio.

 

B. Ceiling lights has the highest contribution margin ratio.

C. Ceiling lights has the lowest contribution margin ratio.

D. Stand-alone lights has the highest contribution margin ratio.

E. Tabletop lights has the highest contribution margin ratio.

 

 

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July 1, 2023
    

 

120.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?    

A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

121.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?  A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

122.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross marginA.               $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

123.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?    

A. $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

124.What is the Red and White's contribution margin for this month if 980 units were sold?    

A. $38,000

B. $18,620

C. $24,500

D. $50,000

E. $21,560

125.What is Red and White's net income under absorption costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

126.What is Red and White's net income under variable costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

127.Decko Industries reported the following monthly data: 

Units produced52,000 units

Sales price$33 per unit

Direct materials$1.50 per unit

Direct labor$2.50 per unit

Variable overhead$3.50 per unit

Fixed overhead$234,000 in total

What is the company's contribution margin for this month if 50,000 units were sold?    

A. $1,326,000

 

B. $1,716,000

 

C. $1,275,000

 

D. $1,650,000

E. $1,450,000

128.Assume that the following information was available for Guy Brown Company. How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio? 

Recycled Toner CartridgesOffice SuppliesFurniture

Sales$500,000$700,000$900,000

Variable expenses

Variable production$50,000$140,000$270,000

Variable advertising$5,000$14,000$36,000

Variable shipping$10,000$28,000$72,000

  

A. Recycled toner cartridges has the lowest contribution margin ratio.

B. Furniture has the highest contribution margin ratio.

C. Office supplies has the highest contribution margin ratio.

D. Recycled toner cartridges has the highest contribution margin ratio.

E. Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.

129.Assume that the following information was available for Daylight Enterprises, Inc. Which of the following statements is(are) true with regard to contribution margin ratio? 

Ceiling LightsTabletop LightsStand-Alone Lights

Sales$350,000$175,000$440,000

Variable expenses

Variable production$70,000$19,250$90,000

Variable advertising$10,500$3,500$22,000

Variable shipping $12,000   $14,000   $28,000

  

A. Tabletop lights has the lowest contribution margin ratio.

 

B. Ceiling lights has the highest contribution margin ratio.

C. Ceiling lights has the lowest contribution margin ratio.

D. Stand-alone lights has the highest contribution margin ratio.

E. Tabletop lights has the highest contribution margin ratio.

 

 

default image
July 1, 2023
    

 

120.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?    

A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

121.Swisher, Incorporated reports the following annual cost data for its single product: 

Normal production level30,000 units

Direct materials$6.40 per unit

Direct labor$3.93 per unit

Variable overhead$5.80 per unit

Fixed overhead$150,000 in total

This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?  A. $60,000 decrease.

B. $90,000 decrease.

C. There is no change in gross margin.

D. $90,000 increase.

E. $60,000 increase.

122.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross marginA.               $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

123.Swola Company reports the following annual cost data for its single product. 

Normal production level75,000 units

Direct materials$1.25 per unit

Direct labor$2.50 per unit

Variable overhead$3.75 per unit

Fixed overhead$300,000 in total

This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?    

A. $187,500 increase.

B. $112,500 increase.

C. There will be no change in gross margin.

D. $112,500 decrease.

E. $187,500 decrease.

124.What is the Red and White's contribution margin for this month if 980 units were sold?    

A. $38,000

B. $18,620

C. $24,500

D. $50,000

E. $21,560

125.What is Red and White's net income under absorption costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

126.What is Red and White's net income under variable costing if 980 units are sold and operating expenses are $12,000?    

A. ($1,380)

B. ($2,000)

C. $2,700

D. $6,620

E. $10,620

127.Decko Industries reported the following monthly data: 

Units produced52,000 units

Sales price$33 per unit

Direct materials$1.50 per unit

Direct labor$2.50 per unit

Variable overhead$3.50 per unit

Fixed overhead$234,000 in total

What is the company's contribution margin for this month if 50,000 units were sold?    

A. $1,326,000

 

B. $1,716,000

 

C. $1,275,000

 

D. $1,650,000

E. $1,450,000

128.Assume that the following information was available for Guy Brown Company. How would Maria Teresa Vazquez and the other owners evaluate this information based on contribution margin ratio? 

Recycled Toner CartridgesOffice SuppliesFurniture

Sales$500,000$700,000$900,000

Variable expenses

Variable production$50,000$140,000$270,000

Variable advertising$5,000$14,000$36,000

Variable shipping$10,000$28,000$72,000

  

A. Recycled toner cartridges has the lowest contribution margin ratio.

B. Furniture has the highest contribution margin ratio.

C. Office supplies has the highest contribution margin ratio.

D. Recycled toner cartridges has the highest contribution margin ratio.

E. Based on contribution margin ratio, the owners should consider expanding the furniture line and scaling back on office supplies and recycled toner cartridges.

129.Assume that the following information was available for Daylight Enterprises, Inc. Which of the following statements is(are) true with regard to contribution margin ratio? 

Ceiling LightsTabletop LightsStand-Alone Lights

Sales$350,000$175,000$440,000

Variable expenses

Variable production$70,000$19,250$90,000

Variable advertising$10,500$3,500$22,000

Variable shipping $12,000   $14,000   $28,000

  

A. Tabletop lights has the lowest contribution margin ratio.

 

B. Ceiling lights has the highest contribution margin ratio.

C. Ceiling lights has the lowest contribution margin ratio.

D. Stand-alone lights has the highest contribution margin ratio.

E. Tabletop lights has the highest contribution margin ratio.

 

 

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550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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