All of the following statements about the online insurance industry are true except: Group of answer choices the industry has been very successful in attracting visitors searching for information about prices and terms of insurance policies. the Internet has lowered search costs, increased price comparison, and decreased prices to consumers for all forms of insurance. websites of almost all the major firms provide the ability to obtain an online quote. the wave of interest in fintech companies has not yet reached the insurance industry.

Answers

Answer 1
C because that’s the answer I did it

Related Questions

What is your favorite quote? At the top of your journal entry, type out one quote that is a source of inspiration or motivation for you. Place quote marks around it and include an APA style in-text citation next to it.

In a paragraph of 8-10 sentences, explain why you like this quote. Develop your paragraph by sharing personal examples, explanation, and connections to other ideas in this course or other media you have seen, heard, or read.

After your paragraph, create an APA style reference entry for the website or page where you found this quote.

Answers

A quote that can be a source of inspiration or motivation for the development of knowledge and critical reasoning is:

"Reading provides the spirit with materials for knowledge, but only thinking makes what we read our own". (John Locke)What is critical reasoning?

It corresponds to the ability of human beings to analyze a theory, opinion and vision on a topic according to their own perspectives and rational and logical precepts, always seeking to observe, investigate, contest and prove a thought taken as true.

Therefore, the phrase of the famous Enlightenment thinker John Locke helps in understanding the importance of thought for society, taking reason as the source of knowledge and development of society and individuals.

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The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment at December 31, 2020

Answers

Answer:

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

Explanation:

Preparation of the journal entry to record the impairment at December 31, 2020

First step is to calculate the Loss on impairment

Cost $900,000

Less: Accumulated depreciation ($400,000)

Carrying Amount $500,000

Less: Fair value ($230,000)

Loss on impairment $270,000

Now let Prepare the journal entry

Dec 31,2020

Dr Loss on impairment $270,000

Cr Accumulated depreciation-Equipment $270,000

(To record the impairment)

What happens first when the demand for a fad peaks and falls?

Answers

Explanation:

What happens first when the demand for a fad peaks and falls? he quantity supplied goes down, and the price goes up.If the demand for a fad peaks falls, the quantity will likely go down as the demand of the product What happens first when the demand for a fad peaks and falls? he quantity supplied goes down, and the price goes up.got less making the quantity to be also less, though because of it, the price are likely to go up as their products are only few in quantity. The correct answer is the sec

Answer:

the quantity supplied goes down, and the price goes up

Explanation:

United Resources Company obtained a charter from the state in January of this year. The charter authorized 218,000 shares of common stock with a par value of $2. During the year, the company earned $494,000 Also during the year, the following selected transactions occurred in the order given:
a. Sold 83,000 shares of the common stock in an initial public offering for $13 per share.
b. Repurchased 23,000 shares of the previously issued shares for $16 per share.
c. Resold 3,000 shares of treasury stock for $19 per share.
Required:
Prepare the stockholders’ equity section of the balance sheet at December 31, 2014. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

United Resources Company

Stockholders' Equity Section of the Balance Sheet at the end of the year:

Authorized share capital:

Common stock, $2 par, 218,000 shares

Issued and Outstanding shares:

Common stock, $2 par, 66,000 shares     $172,000

Additional paid-in capital - common stock  642,000

Treasury stock, $2 par, 20,000 shares       (40,000)

Retained earnings                                        494,000

Total equity                                              $1,268,000

Explanation:

a) Data and Analysis:

Authorized share capital:

Common stock, $2 par, 218,000 shares

Net income for the year = $494,000

Transactions:

a. Cash $1,079,000 Common stock $166,000 Additional Paid-in Capital - Common $913,000

83,000 shares of the common stock in an initial public offering for $13 per share.

b. Treasury stock $46,000 Additional Paid-in Capital- Common stock $322,000 Cash $368,000

23,000 shares of the previously issued shares for $16 per share.

c. Cash $57,000 Common stock $6,000 Additional Paid-in Capital - Common stock $51,000

3,000 shares of treasury stock for $19 per share.

The wide range of different social and ethnic backgrounds of people from varied cultures, genders, sexual orientation, religion, and other unique life perspectives is called

cultural sensitivity
diversity
inclusivity
variety

Answers

Answer:

cultural sensitivity

Explanation:

A

Answer:

Explanation: DIVERSITY

Diversity refers to the condition of having people varying in social and ethnic backgrounds, genders, sexual orientations, etc

Customer goods returned will be credited to which account ?

Answers

Answer:

Goods Account (based on the question)

Alternatively :

In Accounts you would usually have a seperate account called ' Returns Inward' and they will be debited there.

Completing market research and determining a target market is part of this section of the marketing plan.
O market analysis
O competitive analysis
O marketing strategies
Ostatement of objectives

Answers

Option A is correct regarding marketing plan.

What is market analysis?

An in-depth analysis of the target market and competitive environment for your company within a given sector is known as a "market." The success you can anticipate when you launch your brand and its products to customers in the market can be projected using this study. Market analysis takes into account both qualitative and quantitative information, such as consumer values, wishes, and purchasing motivations. Quantitative information includes the size of the market you want to target as well as the pricing and revenue estimates that consumers are ready to pay.

What is market research?

In order to effectively advertise products to a specific market, market research is the process of acquiring knowledge about that market, including its customers' wants and behaviors.

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What is an important premise of Adam Smith’s conclusion about economic prosperity

Answers

An important premise of Adam Smith's conclusion on economic prosperity is that individual freedom is necessary for a society to prosper.

What is Adam Smith's thesis?

The philosopher developed ideals about economic liberalism, that is, the reduction of state intervention in the economy, generating the least control over freedom of thought, work and private property.

For the author, the more individuals are motivated and encouraged to exercise their individual freedom, the more benefits society will have from the innovation and creativity of each citizen.

Therefore, economic liberalism is a similar approach to the free market, an issue that is so much discussed in an increasingly globalized society.

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You are long 10 put contracts on Cisco (CSCO) with a strike price of $55.00. The option premium is $1.75 per share, and the market price of CSCO on the day you enter the contracts is $54.25. If you are long the underlying shares of CSCO, what will the total gain or loss be of your position if you exercise the contracts when CSCO is selling for $49.00 per share

Answers

Answer:

$42.50

Explanation:

Here, buying a put option means that the option holder will gain when the share price falls below the strike price.

Strike price is $55

Premium paid is $1.75 per share

Premium paid = $1.75 * 10 = $17.5

Shares are selling for $49

=> $(55- 49) * 10 contracts = $60.

So, net profit = $60 - $17.5 = $42.5

what is federal housing administration?

Answers

The Federal Housing Administration (FHA) is a U.S. government agency that provides mortgage insurance on mortgages made by FHA-approved lenders. The FHA was created in 1934 as part of the National Housing Act, and its purpose is to provide mortgage insurance on loans made by private lenders for the purchase of homes. This insurance helps to protect the lender against loss if the borrower defaults on the loan, and it allows borrowers who might not otherwise qualify for a conventional mortgage to purchase a home. The FHA does not actually make loans, but instead it insures mortgages made by private lenders, meaning that if the borrower defaults on the loan, the FHA will pay the lender.

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You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 12.7 percent. Stock X has an expected return of 11.4 percent and a beta of 1.25, and Stock Y has an expected return of 8.68 percent and a beta of .85. How much money will you invest in Stock Y? What is the beta of your portfolio? (2 pts)

Answers

Answer: See explanation

Explanation:

a. How much money will you invest in Stock Y?

Let the weight of Stock X = x

Let the weight of Stock Y = (1 - x)

Expected return of stock X = 11.4%

Beta of stock X = 1.25

Expected return of stock Y = 8.68%

Beta of stock X = 0.85

The Portfolio Return will then be calculated as:

= (Weight of Stock X × Return of Stock X) + (Weight of Stock Y × Return of Stock Y)

0.127 = [x × 0.114 + (1 - x) × 0.0868]

0.127 = [x × 0.114 + 0.0868 - x × 0.0868]

0.127 = x × 0.0272 + 0.0868

0.127 - 0.0868 = x × 0.0272

0.0402 = 0.0272x

x = 0.402/0.0272

x = 1.4779

Weight of Stock X = 1.4779

Therefore, Weight of Stock Y will be:

= 1 - 1.4779

= -0.4779

The amount that's invested in Stock Y will be:

= $100,000 × (-0.4779)

= -$47,790

b. What is the beta of your portfolio?

Portfolio Beta will be calculated as:

= 1.4779 × 1.25 + (-0.4779) × 0.85

= 1.44

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $170 million of 10% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 12%. The price paid for the bonds was $151 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $160 million.
Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?
5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

Answers

Answer:

            Journal Entries - Fuzzy Monkey Technologies Inc.

S/N  Date        Particulars                              Debit'Mill    Credit'Mil

1      1-Jan-18 Investment in Bond                $170.00

                              To Cash                                                $151.00

                              To Discount on bond investment       $19.00

                       (Being investment in bond recorded)

2   30-Jun-18   Cash      ($170*10% *6/12)             $8.50

                        Discount on bond investment     $0.56

                              To Interest revenue ($151*12%*6/12)      $9.06

                         (Being revenue recognition for bond interest

                         and discount amortized)

3    31-Dec-18   Cash  ($170*10%*6/12)                 $8.50

                         Discount on bond investment   $0.59

                             To Interest revenue ($151.56*12%*6/12)  $9.09

                         (Being revenue recognition for bond interest

                           and discount amortized)

4. The investment is to be recorded at amortized cost on balance sheet:

= $151 + $0.56 + $0.59

= $152.15 million

5. Statement of cash flows (Partial) for 2018

Particulars                                           Amount'mil   Description

Cash flow from operating activities:

Interest received                                      $17.00        Inflow

Cash flow from investing activities:

Cash paid for purchase of investment    $151.00      Outflow

The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. Suppose the equilibrium price of
artichokes is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week.
Using the graph determine how much economic surplus is generated in the market each week.
4
Economic surplus: $

Answers

The producer surplus created for suppliers of artichokes each week are $100.

What is surplus?

When you have more of something that you need or expect to utilize, you have a surplus. When there is extra stockpile is, when the quantity given exceeds the quantity requested—a market surplus occurs. Surplus is an economic phrase that refers to the amount of advantage or sources to support by consumers and manufacturers when they exchange goods and services.

Equilibrium price = $3 per pound

Equilibrium quantity = 100 pounds

Y-intercept of supply curve = $1 per pound

Determine the Producer Surplus -

producer surplus  = 1/2 × [Equilibrium price - Y-intercept of supply curve] × Equilibrium quantity

producer surplus = 1/2 × [$3 - $1] × 100

producer surplus = 1/2 × [$2] × 100

producer surplus = 1/2 × 200

PS = $100

Thus, the producer surplus created for suppliers of artichokes each week are $100.

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Your question is incomplete, but most probably the full question was.

The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. If the equilibrium price is $3 per pound and the equilibrium quantity is 100 pounds per week, what is the producer surplus created for suppliers of artichokes each week?

Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or HoursStandard Price or Rate Direct labor 0.50hours$24.00per hour Variable overhead 0.50hours$4.40per hour In August the company produced 8,300 units using 4,260 direct labor-hours. The actual variable overhead cost was $17,466. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is:

Answers

Answer:

$484 U

Explanation:

The variable overhead efficiency variance is computed as

= (Actual labor hours - Budgeted labor hours) × Hourly rate for standard variable overhead

Variable overhead efficiency variance

= [(4,260 - (8,300×0.5)] × $4.40

= (4,260 - 4,150) × $4.40

= $484 U

Therefore, the variable overhead efficiency variance for August is $484 U

Sunland Company's accounting records reflect the following inventories: Dec. 31, 2019 Dec. 31, 2020 Raw materials inventory $ 78000 $ 62000 Work in process inventory 102000 114000 Finished goods inventory 100000 92000 During 2020, Sunland purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000. How much raw materials were transferred to production during 2020 for Sunland

Answers

Answer:

$1,466,000.00

Explanation:

Calculation to determine How much raw materials were transferred to production during 2020 for Sunland

RAW MATERIALS TRANSFERRED TO PRODUCTION

Beginning Raw material inventory $78,000.00

Raw material Purchases $1,450,000

Total Raw material available for use $1,528,000.00

($78,000+$1,450,000)

Less: Ending Raw material inventory $62,000.00

Raw materials transferred to production $1,466,000.00

($1,528,000.00-$62,000.00)

Therefore the Amount of raw materials that were transferred to production during 2020 for Sunland is $1,466,000.00

Suppose you trade dollars and euros for a bank that has branches in New York and Rome. You can electronically transfer the funds between the two branch locations at no cost, and trading commissions are negligible. The current dollar-per-euro exchange rate in New York is E$/EUR^NY = 1.5695, while in Frankfurt, it is E$/EUR^FR = 1.627.
You can make a profit for the bank if you buy euros in___and sell them in____.
Other foreign exchange traders will buy euros in___and sell them in___. They will also buy dollars in___and sell them in___. As a result, the dollar-per-euro exchange rate in Frankfurt (E$/EUR^FR) will___, and the dollar-per-euro exchange rate in New York (E$/EUR^NY) will___.

Answers

Answer:

a) Buy in  Frankfurt  sell in New york

b) Buy in Frankfurt and sell in New York

c) Buy in New York and sell in  Frankfurt

d)  Fall and Rise

Explanation:

Exchange rate in New York ;  E$/EUR^NY = 1.5695. i.e. $1 can be exchanged for 1.5695 euro

Exchange rate in Frankfurt : E$/EUR^FR = 1.627 i.e. $1 can be exchanged for 1.627 euros

a) To make profit

Buy euros in Frankfurt  and sell them in New York

b) Other Foreign exchange traders will buy Euros in Frankfurt and sell in New York as well to make gain

c) They will also buy $ in New York and sell them in Frankfurt  

d) The Dollar per Euro exchange rate in Frankfurt will Fall and the dollar euro rate in New York will Rise

This is due to the law of demand and supply

SMART goals are recorded here and lay the groundwork for the marketing plan.
O market analysis
O marketing strategies
O statement of objectives
O competitive analysis

Answers

SMART goals are recorded here and lay the groundwork for the marketing plan: C. statement of objectives.

What is marketing?

In Business management, marketing can be defined as a strategic process which typically involves developing promotional techniques and sales strategies by a business firm to enhance the availability of goods (products) and services, in order to meet the needs of the end users or consumers through advertising and market research.

What are SMART goals?

In Business management, SMART goals can be defined as a well-established tool that can be used by an individual, a project manager or business organization to plan (create), track and achieve (accomplish) both short-term and long-term goals.

Generally speaking, SMART is a mnemonic acronym and it comprises the following elements:

SpecificMeasurableAchievable or Attainable.Realistic (results oriented).Timely

In this scenario, we can reasonably infer and logically deduce that SMART goals are recorded as statement of objectives because they would lay the groundwork for the marketing plan.

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Which of the following best defines the term "cost per hire?"
A. The amount it costs to attract, evaluate, and hire a job candidate
B. The cost of internal versus external recruitment sources
OC. The average cost of advertising a job posting
D. The cost of training a new employee

Answers

D is your answer

This answer to me would be the most logical because if I were to hire someone I would consider the “cost per hire” to be the cost of training the person I just hired.

Hope this helps have an excellent day!

how much you proposed in marketing budget in your cherry mobile brands

Answers

Answer:

If part of your marketing strategy was to release a mobile app, you will also need to budget for prototype testing. This is important to ensure that your mobile app is user friendly and that you can fix any issues that may arise. The average app marketing budget is estimated to be between $1,000 and $5,000.

Explanation:

Which of the following is not an example of restructuring?

Answers

Answer:

c

Explanation:

Increasing or decreasing the amount of common stock is not an example of restructuring. Thus, option 'A' is the correct option.

What is restructuring in a business?

A business restructuring is a key step that a company takes to change and reorganize its operations with the goal of lowering debt, boosting productivity, and enhancing the firm's moving ahead. Businesses experiencing financial challenges are more likely to reorganize.

A firm that finds itself in a situation where its debt is rising and it is having trouble making payments on time will frequently choose to restructure in order to find a sustainable solution to pay back all of its creditors and settle any outstanding debt. In general, the significance of corporate restructuring originates from its capacity to right the ship, divert attention from a gathering storm, and steer it in the direction of sheltered seas. It can act to turn around a failing business and position it for success.

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The complete options are:

a. Increase or decrease the amount of common stock

b. Eliminating profitable but unrelated divisions.

c. Merging with companies in related industries.

d. Divesting of an unprofitable division

ice Manager uses a Periodic Review Inventory System: they check the inventory in the Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level in the closet. Once the order is placed, it takes 3 days to receive the order. The average demand for file folders is 70 per day. This week, the operator has counted 240 file folders in the closet. What is the Minimum Restocking Level (restocking policy) needed to cover expected demand over time without stocking out?

Answers

Answer:

910 days

Explanation:

Calculation to determine the Minimum Restocking Level needed to cover expected demand over time without stocking out

Using this formula

Minimum Restocking Level= (Average daily demand × Reorder period)+ (Average daily demand × Lead time)

Let plug in the formula

Minimum Restocking Level= (70 days × 10 days) + (70 days × 3 days)

Minimum Restocking Level=700 days + 210 days

Minimum Restocking Level= 910 days

Therefore the Minimum Restocking Level needed to cover expected demand over time without stocking out is 910 days

Explain international trade, alliance and conflict

Answers

International trade is the exchange of goods and services between countries. It is an important part of the global economy, as it allows countries to specialize in certain industries and to purchase goods and services from other countries. Alliances are agreements between two or more countries to cooperate in areas such as trade, defense, or foreign policy. Conflict is a disagreement or clash between two or more parties, usually involving the use of force or the threat of force. Conflict can be between countries, groups, or individuals.

The paid-off portion of your mortgage at any point in time is called the __________., a. equity, b. principal, c. down payment, d. line of credit

Answers

Answer:

b is answer i think ..........

Consultant Co. is in the business of public relation consulting. The firm has two units: Government (working with various levels of government) and Corporate (working with different corporations). For government contracts, the firm can charge the total cost plus 15% in their consulting fees (a cost-plus contract). For corporate contracts, the firm can only charge a lump sum that is negotiated and signed into the contract.
The costs are estimated for the two units as the following:
Government Corporate Total
Direct costs 45000 75000 120000
Chief consultant input hours 300 700 1000
Total hours worked 1000 2000 3000
Consultant Co. has a total indirect costs total $1.2 million for the year.
a. If the firm chooses direct cost as their cost driver, how would the indirect costs be allocated to the two units? What is the expected revenue that they can generate from the Government unit?
b. If the firm chooses to allocate costs based on chief consultant input hours, how would the indirect costs be allocated to the two units? What is the revenue from the Government unit?
c. If the firm chooses total hours worked as the cost driver, how would the indirect costs be allocated to the two units? What is the revenue from the Government unit?

Answers

Answer: See attachment

Explanation:

a. Based on the information in the attachment, the indirect costs that's allocated to the units will be:

Government = 450,000

Corporate = 750,000

The expected revenue that can be generated from the government unit will be:

= 495,000 × (100% + 15%)

= 495,000 × 1.15

= $569250

b. Based on the information given, the indirect costs that's allocated to the units will be:

Government unit = 360,000

Corporate unit = 840,000

The revenue from the government will be:

= 405000 × (100% + 15%)

= 405000 × 115%

= 405000 × 1.15

= $465750

c. If the firm chooses total hours worked as the cost driver, the indirect costs be allocated to the two units as:

Government = 400,000

Corporate unit = 800,000

Revenue from government will be:

= 445000 × 115%

= 445000 × 1.15

= $511750

Check attachment for further explanation.

take a look at the figure. The basic shape of the body of the lamp shown is a A. cylinder. B. pyramid. C. cone. D. sphere.

Answers

The basic shape of the body of the lamp shown is the cone. A cone is formed by a set of line segments, half-lines, or lines connecting a common point.

What is a cone?

The cone in the shape of the figure is a three-dimensional geometric shape. That smoothly forms a flat base to a point called the apex or vertex. A cone is formed by a set of line segments, half-lines, or lines connecting a common point, the apex. the points on a base that is in a plane that does not contain the apex.

A cone refers that a shape consisting of a circular base and the once continuous curved base tapering to a point (the apex) above the center of the circular base.

Therefore, The lamp shown is the cone. A cone is formed by a set of line segments

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a. Fiscal Policy involves changing _______________. In the United States, Fiscal Policy is implemented by the ____________.
b. _____________ can be used to address a Recessionary Gap by ________________ taxes and ___________________ government purchases.

Answers

Answer:

a. Fiscal Policy involves changing government purchases and tax. In the United States, Fiscal Policy is implemented by the federal government.

b. An expansionary fiscal policy can be used to address a Recessionary Gap by reducing taxes and increasing government purchases.

Explanation:

Fiscal policy can be described as the employment of the government purchase and taxation level by the federal goveernment with the aim of influencing the aggregate demand and economic activity level.

Expansionary fiscal policy occurs when the government increases its purchases and reduces taxes in order to close Recessionary Gap, while contractionary fiscal policy is when the government reduces it purchases and increases taxes.

Based on this explanation, we have:

a. Fiscal Policy involves changing government purchases and tax. In the United States, Fiscal Policy is implemented by the federal government.

b. An expansionary fiscal policy can be used to address a Recessionary Gap by reducing taxes and increasing government purchases.

Which of the followWhich of the following actions do not cause an impropriety in job costing?
Choosing an allocation method based on the results rather than choosing the method based on resource usage.
Misstating the stage of completion.
Choosing to use normal costing rather than actual costing.
Charging costs to the wrong job.
ing actions do not cause an impropriety in job costing?

Answers

Answer:

Choosing to use normal costing rather than actual costing.

Explanation:

The choice between normal costing and actual costing is not an ethical issue.

Sheffield Corp. is planning to sell 1070 boxes of ceramic tile, with production estimated at 800 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $17 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Sheffield has 3300 pounds of clay mix in beginning inventory and wants to have 5400 pounds in ending inventory. What is the total amount to be budgeted for direct labor for the month

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Production= 800 boxes

Each box of tile requires 0.50 hours of direct labor.

Employees of the company are paid $17 per hour.

First, we need to determine the number of hours required:

Number of hours= 800*0.5= 400 hours

Now, the total direct labor cost:

Direct labor cost= 400*17= $6,800

Production Budget Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Production Budget For the Month Ending January 31 fill in the blank 2 fill in the blank 4 Total units available fill in the blank 5 fill in the blank 7 Total units to be produced in January fill in the blank 8

Answers

Answer:

Production budget for Pasadena Candle Inc

Expected units to be sold                     800,000

Desired ending inventory, Dec 31        20,000  

Total units available                               820,000

Estimated beginning inventory, Jan 1  -35,000

Total units to be produced in Jan.      785,000

If the consumption function is defined as C = 5,500 + 0.9Y, what is the
autonomous level of consumption expenditure?
A. $4,950
B. $5,500
C. $6,050
D. $6,111

Answers

Answer:

Option B ($5,500) is the appropriate choice.

Explanation:

The given expression is:

⇒  [tex]C = 5,500 + 0.9Y[/tex]

At the zero (0) level of income, the consumption would be the Autonomous consumption.

then,

Y = 0

On substituting the value of "Y" in the given expression, we get

⇒  [tex]C=5,500+0.9(0)[/tex]

⇒      [tex]=5,500+0[/tex]

⇒      [tex]=5,500[/tex] (%)

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