For a machine whose limited capacity is prohibiting the company from producing and selling additional units, 37.87% is the machine's OEE.
OEE (Overall Equipment Effectiveness) calculation:
OEE= Utilization rate * Efficiency rate * Quality rate. The utilization rate is calculated as follows: Operating time/Scheduled time = 4550/6500*100 = 70%.
The efficiency rate is calculated as follows: (total output*ideal run rate) / Operating time (17290 / 6.5) / 4550 = 2660/4550 = 58.46 percent. Good units produced divided by total units produced gives a quality rating of 16000/17290 or 92.54 percent.
OEE is calculated as follows: 70% * 58.46% * 92.54% = 37.87%.
The overall equipment effectiveness of a manufacturing operation is a measurement of how well it is used in comparison to its full potential during the times when it is scheduled to run. It determines how much of the time spent manufacturing is actually productive.
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a seller owns 8 acres of commercially zoned property. if he sells it for $10.15 per square foot, what is the selling price?
a seller owns 8 acres of commercially zoned property. if he sells it for $10.15 per square foot.
selling price=8 acres × 43,560 square feet = 348,480 square feet
348,480 square feet × $10.15 = 3,537,072
So the answer is $.3,537,072 .
What does a selling price mean?The amount a customer pays for a good or service is known as the selling price. It can change based on the price that consumers are prepared to pay, the seller is willing to take, and how competitive the price is in relation to other companies in the market. It might aid a company in determining the selling price in accordance with the anticipated profit margin. Let's say a corporation wants to generate a 20% margin on a $10 product. It must be sold for $12.5.
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Estimated useful life is:
A) the total amount that the company paid for the asset.
B) the expected cash value at the end of the asset's useful life.
C) the number of years for which the asset is useful.
Useful life is “an estimate of the average number of years an asset is viewed useable before its price is totally depreciated.”
How do companies estimate useful life of an asset?Factors involved in finding out the useful life of a tangible asset consist of the age of the asset when purchased, how regularly the asset is used, and the environmental conditions of the business that purchased the asset.
Salvage fee is the estimated resale price of an asset at the give up of its beneficial life. It is subtracted from the cost of a constant asset to decide the quantity of the asset cost that will be depreciated. Thus, salvage price is used as a thing of the depreciation calculation
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https://brainly.com/question/14643650#SPJ4g consider the following quality improvement strategy as expressed by a series of if-then statements: if real-time feedback information capabilities improve, then post-sales service time will improve. if post-sales service time improves, then post-sales service quality will increase. if post-sales service quality increases, then customer satisfaction will increase. if customer satisfaction increases, then market share will increase. if market share increases, then sales will increase. if sales increase, then profits will increase. required: select a strategy map that shows the cause-and-effect relationships of the quality improvement strategy (see exhibit 13.8 for an illustrative example).
Real-time feedback is a cutting-edge approach to overall performance management and improvement that focuses on non-stop development, now not evaluation.
Managers capture micro-moments of worker behaviour and educate them primarily based on observation
Why real-time feedback is important?Real-time remarks affords a device to enhance the way you engage with your customers. It lets them understand their opinion matters, gives you the hazard to get to the bottom of any problems, and is extra in all likelihood to result in correct feedback.
Realtime feeds of information like monetary information, climate data, transport information etc. Content pushed in realtime like news.
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https://brainly.com/question/28019460#SPJ4Eamonn is interested in working in technology. He really likes the programming side of computers and wants to help make programs that people will use to make tasks simpler and more efficient. What type of technology is Eamonn MOST LIKELY to pursue, based on these interests?
A. software
B. hardware
C. semiconductor
D. marketing
In a case whereby Eamonn is interested in working in technology and really likes the programming side of computers and wants to help make programs that people will use to make tasks simpler , then he have interest in A. software.
What is a software?Software can be explained as the set of instructions, as well as data or programs that canb be used in the operation computers and execute specific tasks.
This ios differnt from the hardware, that focus on the physical aspects of a compute and software is an applications, scripts and programs that can be used by Eamonn to make tasks simpler.
Therefore, option A is correct.
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vaughn mclean manages a group of eight electrical engineers at red hot electrical company in waterford, st. catherine. his team is highly trained and well respected by experts both inside and outside the company. recently one of vaughn's engineers suggested a new technique for the development and use of an argon laser. there appeared to be rich potential for this technology, but vaughn wasn't certain that developing this technology was the best use of his limited resources. vaughn was facing a significant decision. if vaughn uses the administrative model of decision making, which of these assumptions would he reject?
The answer to the question is that in a complicated organization, rational processes typically result in the optimal solution.
What does it mean to have a company?
You have a guest or buddy with you if you have company. He didn't indicate whether he was alone. See the company definition in its entirety. A company's formation creates an artificial entity that the law recognizes as a separate legal person with rights and obligations.
What types of businesses are there?
Types of Businesses
Limited Liability Companies.companies with limited liability.Unlimited Businesses.One-person businesses (OPC)Private Businesses.Public CorporationsCompanies with holdings and subsidiaries.Associate Businesses.To know more about Company visit:
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you are saving for a porsche carrera cabriolet, which currently sells for nearly half a million dollars. your plan is to deposit $32,000 at the end of each year for the next 8 years. you expect to earn 13 percent each year. required: determine how much you will have saved after 8 years. determine the amount saved if you were able to deposit $37,000 each year. determine the amount saved if you deposit $32,000 each year, but with 15 percent interest.
The amount saved if you deposit $32,000 each year, but with 15 percent interest is $239,061.37 .
What is interest?Interest is the amount that is paid by a borrower or deposit-taking financial institution to a lender or depositor in addition to the principle amount at a specified rate in the domains of finance and economics (the amount borrowed). It is not the same as any fees the borrower may be required to pay the lender or another party. It also differs from a dividend, which is cash distributed to shareholders (owners) by a company from its profit or reserve, but not at a set rate entirely determined in advance, but rather on a pro rata basis as a share of the generally greater by risk-taking businessmen when revenue is earned that exceeds all costs.
Total duration of the investment; N = 10
Recurring payment; PMT = -15,000
Interest rate ; I/Y = 10%
PV = 0
Then compute Future value, CPT FV = 239,061.369
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currently, 3m company pays an annual dividend of $2.52. if the stock is selling for $105, what is the dividend yield?
Currently, 3m company pays an annual dividend of $2.52. if the stock is selling for $105, Annual dividend = D = $2.52 Stock.
A dividend is a distribution of profits by means of an enterprise to its shareholders. when an organization earns earnings or surplus, it may pay a portion of the profit as a dividend to shareholders. Any quantity now not allotted is taken to be re-invested within the enterprise.
Definition: Dividend refers to praise, cash, or in any other case, that a corporation offers to its shareholders. Dividends can be issued in numerous paperwork, consisting of cash charges, stocks, or other shapes. An organisation's dividend is decided with the aid of its board of administrators and it calls for the shareholders' approval.
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jorge purchased a copyright for use in his business in the current year. the purchase occurred on july 15th and the purchase price was $79,500. if the copyright has a remaining life of 75 months, what is the total amortization amount jorge may deduct during the current year? (assume this is not an asset acquisition to which §197 applies.)
total amortization amount jorge may deduct during the current year is $5400.
The straight-line technique is typically used to amortize copyrights, thus to calculate the amount of amortization in a given year, divide the copyright's value by the duration of its useful life. For instance, you would amortize $10,000 of the value of a copyright each year if its value was $100,000 and it had a 10-year useful life. The book value will be zero at the conclusion of the period, reflecting the expectation that the copyright will no longer be able to generate income.
It might be difficult to understand how to account for intangible assets such as intellectual property and copyrights. However, you can decide how to treat copyrights in your financial statements by using common accounting principles.
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why should mary ann and nana create a business plan? multiple choice to deter competition to provide an overall road map of how to start the business and to notify competitors they will be entering the market to determine the best way to own the business and make efficient production schedules to provide an overall road map of how to start the business and to attract/satisfy investors to secure a bank loan
mary ann and nana create a business plan to provide an overall road map of how to start the business and to attract/satisfy investors to secure a bank loan.
Why is it important to have a business plan ?A business plan outlines your company's goals and how it intends to get there. A business plan forces you to consider all facets of your enterprise. - If you want to get financing, you must have a strong business plan. A business plan aids in the dissemination of your ideas.
What element of a company plan is crucial?Undoubtedly, the most significant portion of the business plan is the executive summary. It must be well-written, succinct, and precise. Many readers of your business plan will determine whether to read more based purely on the executive summary.
What should a business strategy include?An executive summary, sections on products and services, marketing strategy and analysis, financial planning, and a budget should all be included in good business plans.
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mastertech furniture company makes chairs. when walmart orders finished chairs from mastertech, it creates what type of demand on inventory?
When Walmart orders finished chairs from Master tech, it creates Independent type of demand on inventory.
Inventories refer to goods and materials that a business holds for the ultimate purpose of reselling, manufacturing, or using. Inventory management is a principle mainly concerned with specifying the form and location of goods to be stored. It is necessary at different locations within a facility or at multiple locations in the supply network to stay ahead of the schedule for regular, planned production and material stockpiling.
The concept of inventory, inventory, or work in progress has been extended from production systems to service businesses and projects, generalizing the definition as "all work in the production process". production - all work that was or is in progress prior to completion of production".
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depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut. a. true b. false
It is true that depending on size of multiplier and crowding-out effects, rightward shift in the aggregate demand from tax cut could be larger or smaller than tax cut.
What is aggregate demand?A macroeconomic term for the total demand for goods and services in an economy at a certain time is aggregate demand (AD), often known as domestic final demand (DFD). The aggregate demand curve is shown by a line drawn between the price level and the real production on the horizontal axis. In accordance with the Pigou effect, higher prices are linked to reduced real wealth, which in turn results in lower consumption spending and, eventually, lower overall demand for goods. By virtue of the equilibrium of the financial market, the Keynes effect states that rising prices indicate a smaller real money supply and, thus, higher interest rates. Because of this, it is likely that there will be less money spent on purchasing new physical capital, which will reduce overall demand for goods.
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A company incurred the following costs related to research and development for the current year: salaries for research employees $ 500,000 developed technology purchased in a business acquisition 250,000 in-process r&d purchased in a business acquisition 150,000 supplies used in research projects 120,000 research performed for sale to another company in the future 80,000 for what amount should the company report research and development expense?.
If a company incurred the following costs related to research and development for the current year: The amount that the company should report research and development expense is:$700,000.
How to find the amount to be reported as research expense?Using this formula to find the research expense
Research expense = Salaries for research employees + Supplies used in research projects + Research performed for sale to another company in the future
Where:
Salaries for research employees=$500,000
Supplies used in research projects = $120,000
Research performed for sale to another company in the future =$80,000
Let plug in the formula
Research expense =$500,000 + $120,000 + $80,000
Research expense =$700,000
Therefore the amount that the company should report research and development expense is $700,000.
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In what tax year can taxpayers expect to receive reporting documents, such as form 1099-b, proceeds from broker and barter exchange transactions, for digital assets?.
A 1099 form will frequently be used to report your revenue if you work alone or as a freelancer. Most of your 1099 forms for reporting payments made to you the previous year should arrive in the mail by January 31 each year.
Who Must Submit Form 1099-B?You will probably receive a Form 1099-B if you used a broker to sell stocks, bonds, or other assets, or if you engaged in a barter exchange transaction (exchanging goods or services for one another rather than money). Regardless of whether you made a profit, lost money, or broke even on these transactions, you must declare them on your tax return.
What does "Proceeds" on Form 1099-B mean?Brokerages and barter exchanges use Form 1099-B: Proceeds from Broker and Barter Exchange, an Internal Revenue Service (IRS) tax form, to record customers' earnings and losses over the course of a tax year.
When do 1099 forms need to be submitted?Except for 1099-NEC, which must be provided by January 31 each year, the IRS requires that the majority of 1099 forms be mailed or electronically filed by February 28 for mail-in submissions and by March 31 for electronic submissions.
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judith jarvis thomson argues that are the best and most suitable form of compensation for the past ill treatment of people of color and women. a. scholarships b. civil rights laws c. jobs d. reparation payments
Judith Jarvis Thomson argues that are the best and most suitable form of compensation for the past ill treatment of people of color and women job.
Affirmative action's goal is to build a workforce that accurately reflects the demographics of the competent workforce that is available in the relevant compensation market. It does this through establishing fair access to employment opportunities. In order to rectify the lengthy history of prejudice minorities and women have experienced, affirmative action rules were created, which, according to some sources, has led to unfair advantages for white people and men. They originally came to light amid discussions about anti-discrimination laws in the 1940s during the civil rights movement.
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which one is not generally considered to be an advantage or good practice of using models for decision making? providing a systematic approach to problem solving emphasizing quantitative information providing an exact representation of reality enabling managers to answer what if questions requiring users to be specific about objectives
One is not generally considered to be an advantage or good practice of using models for decision making is providing a systematic approach to problem solving.
Making decisions involves selecting a course of action, acquiring data, and weighing potential answers. By gathering pertinent data and outlining options, a step-by-step decision-making process can assist you in making more careful, considered judgments.
Making decisions is crucial since it enables you to select from a variety of possibilities. It is important to acquire all relevant data and consider its advantages and disadvantages before making a decision. It is vital to concentrate on actions that can assist in making the proper selections.
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under the statute of frauds, which of the following statements is true of the one-year rule for contracts? multiple choice the possibility that a contract's terms could be performed within one year does not remove the contract from the statute's writing requirements. if a contract can possibly be performed within a year, but such performance is highly unlikely, then the contract needs to be in writing to be enforceable. under the statute, the one-year period begins the day after the contract is created, not when it is scheduled to begin. the test for compliance with the one-year rule considers the likelihood of completing the contract in one year rather than the possibility.
Under the statute, one-year period begins day after the contract is created, not when it is scheduled to begin is true of one-year rule for the contracts.
What is a contract?A legal binding agreement between two or more parties that establishes, outlines, and regulates their respective rights and obligations is known as a contract. In most cases, contract entails transfer of products, services, money, or promise to transfer any of those at a later time. In the event of a contract breach, the harmed party may seek court remedies including damages or revocation. Agreements must be kept, which is the foundation of contract law, a branch of law that deals with contractual duties. Like other aspects of private law, contract law differs depending on the jurisdiction. The numerous jurisdictional frameworks for contract law can be broadly divided into common law jurisdictions, civil law jurisdictions, and mixed law jurisdictions, which include parts of both common and civil law.
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for custom-made equipment or commercial construction projects, which pricing method is most likely used?
For custom-made equipment or commercial construction projects, cost stage pricing method is most likely used.
The cost of the producer's products is adjusted using a pricing strategy that benefits both the manufacturer and the consumer. Pricing is determined by the company's usual prices as well as how much a customer thinks an item is worth in comparison to similar products from other companies.
Replacement cost, market comparison, discounted cash flow/net present value, and value comparison is the four pricing methods that can help you determine the price of what you sell.
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on april 12, hong company agrees to accept a 60-day, 10%, $5,700 note from indigo company to extend the due date on an overdue account payable. what is the journal entry made by indigo company to record the transaction?
In its three years of operation, Solanki Partners has had tremendous success.
The proprietors have made the decision to incorporate and make stock shares available to the general public. This kind of share sale is known as an IPO. The word "equity" relates to fairness and justice and differs from the concept of equality in that it acknowledges that not everyone starts from the same position and that inequities should be acknowledged and corrected. Equity can be used to a single asset, together with real property assets, or to a firm by calculating equity by deducting liabilities from property. For instance, if a person owns a home worth $400,000 and owes $300,000 on the loan, the difference of $100,000 is equity.
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WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of?
entrepreneurism.
a low-cost strategy.
consumer surplus.
diminishing returns.
offshoring.
WeShop4You has created a grocery delivery service that is unmatched by its competition. The value the company has created now makes it difficult to implement new ideas without spending more money than it originally took to start the business. This demonstrates the idea of entrepreneurism.
What distinguishes entrepreneurialism from traditional business ownership?Visionaries, entrepreneurs may turn a business, no matter how big or little, from an idea. Starting a business from nothing and growing it into a successful enterprise is the process of entrepreneurship.
What are the advantages of being an entrepreneur?Entrepreneurs have played a significant role in accelerating societal change and enhancing how people live and work. By generating jobs and making goods safer, more affordable, and more useful, they contribute to raising the standard of living for everyone.
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Analysis that describes what would happen if various actions were taken is _____ analysis. a. normative b. partitioning c. valuation d. positive
Analysis that describes what would happen if various actions were taken is positive analysis.
Law of demand, which studies the relationship between the fee of a good and the amount bought, is an apt instance of nice monetary evaluation. That is because it is based on tested facts, that may be empirically examined and it now forms the idea for crucial microeconomic theories.
Positive analysis describes and explains diverse economic phenomena. Normative economics specializes in the cost of financial fairness, or what the economy "should be" or "must be.
Positive economics is the objective evaluation of the financial study. This entails investigating what's happened versus what's going on, allowing economists to predict what is going to appear in the destiny.
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A worm is structured as a complete, standalone program whereas a virus is a fragment of code embedded in a legitimate program. t/f
A virus is a piece of code embedded in a legal software, whereas a worm is designed as a full, standalone program. This statement is false
A stand-alone program, often referred to as a freestanding program, is a computer program that is designed to boot with the target processor's bootstrap method and operates on bare metal without loading any extra modules, library functions, or program. It is software that can "stand on its own," in other words, without assistance from the Internet or an additional processing computer. For instance, an independent system is a TiVo box used to record television shows, but a DVR built inside a digital cable box is not.
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________ reflects the idea in e-commerce that large numbers of people can make better decisions about a wide range of topics or products than a single person or even a small committee of experts.
Crowdsourcing reflects idea in e-commerce that large numbers of people can make better decisions about wide range of topics or products than single person or even small committee of experts.
What is crowdsourcing?Crowdsourcing refers to a process in which a sizable number of scattered individuals produce or contribute goods or services, including ideas, votes, microtasks, and money, for compensation or as volunteers. Digital platforms are frequently used in contemporary crowdsourcing to draw participants and distribute work among them in order to produce a final product. There are several historical examples of crowdsourcing, therefore it is not just applicable to internet activities. A combination of the words "crowd" and "outsourcing," crowdsourcing is a new term. Crowdsourcing, as opposed to outsourcing, typically incorporates less exclusive and more generalized participant groupings. Crowdsourcing has several benefits, including promoting diversity while lowering costs, speeding up the process, improving quality, and/or increasing the work's flexibility and scalability. Methods for crowdsourcing include contests, digital labor markets, public online cooperation, and data donation.
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the first step in the supplier partnership implementation process includes the strategic verification of the need for a supplier partnership. here, the firm must evaluate the potential of a partnership in comparison to traditional processes.
The first step in the supplier partnership implementation process includes the strategic verification of the need for a supplier partnership. Here, the firm must evaluate the potential risk and benefits of a partnership in comparison to traditional processes.
A supplier is a person, company, or organization that sells or supplies something to customers, such as goods or equipment. Supplier classification is determined by factors such as supplier qualification results, performance evaluation, and strategic importance.
The seller is commonly referred to as the supplier, whereas the receiver is referred to as the buyer. The supplier manufactures goods and distributes them through a distribution channel. The goods are then sold to a wholesaler until they reach the final consumer.
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at the start of the year, habitat for humanity reports gross contributions receivable of $10,000 and a related allowance for bad debts of $2,000. during the year, $7,500 of these receivables are collected and the rest are written off. habitat for humanity records current year contributions of $150,000, of which $120,000 are collected in cash. its ending allowance for bad debts balance should be 20% of uncollected receivables. all of these promises are short-term so habitat for humanity does not discount them to present value.
What is bad debt expense for the current year?
a. $6,500
b. $6,000
c. $5,500
d. $4,000
At the beginning of the yr, habitat for humanity reviews gross contributions receivable of $10,000 and an associated allowance for terrible money owed of $2,000. in the course of the year, $7,500 of those receivables are gathered and the relaxation is written off. habitat for humanity statistics the modern yr a. $6,500
Option A $6,500
Allowance for terrible money owed after write-off = $2,000 - $2,500 ($10,000 - $7,500)
= $500 debit
ending contributions receivable = $150,000 - $120,000
= $30,000
finishing allowance for bad money owed = (ending contributions receivable * 20%)
= $30,000 * 20%
= $6,000
awful debt expose = finishing allowance for bad money owed + Debit stability in allowance for horrific money owed
= $6,000 + $500
= $6,500
The answer is option a.
An expense is an object requiring an outflow of money, or any form of fortune in popularity, to some other man or woman, or organization as the price for an object, carrier, or different category of charges. For a tenant, rent is a cost. for college students or parents, training is a rate.
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How is the marketing department involved in the technical and marketing development stage of the product development process?.
They test product prototypes with target customers and identify the most effective marketing mix for the new product.
What examples of the marketing mix are there?The group of initiatives, or strategies, that a company uses to market its name or products collectively is known as the marketing mix. The four Ps make up a conventional marketing mix: pricing, product, promotion, and place.
Which part of the marketing mix?Helps in figuring out what advantages your product or service may offer clients. helps develop a successful product offering. helps in the creation, organization, and execution of effective marketing activities. helps businesses use their advantages and cut unnecessary costs.
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does the south delaware coors distributorship offer sufficient investment potential given mr. brownlow's current business and personal situation?
Yes, the south Delaware coors distributorship offer sufficient investment potential given Mr. brownlow's current business and personal situation. "In light of Mr. Brownlow's circumstances, both personal and professional, can there be sufficient
THE INSTRUCTOR'S GUIDE TO YOUR CASE ANALYSIS FOR SOUTH DELAWARE COORS, INC. Background Because the problem in the case is straightforward but the data needed to solve it requires conceptualization and insight, South Delaware Coors, Inc. represents an interesting marketing scenario for three reasons: the case contains elements common to most feasibility decisions (estimates of industry demand, market share, investments, costs, and resulting performance are required); and the case requires students to develop decisions based on the research information. There are two issues with the case. The first is a choice about what research Manson and Associates should carry out in order for Larry Brownlow to calculate the viability of a Coors distributorship for a two-county region in Delaware. The second issue is Brownlow's decision regarding his application, or, in other words, whether or not the distributorship is feasible. Although it is mostly implied in the case, this problem is the one you must address in your analysis.
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an asset representing the value of a company over and above its identifiable tangible and intangible assets is referred to as
An asset representing the value of a company over and above its identifiable tangible and intangible assets is referred to as goodwill.
An intangible asset known as goodwill is related to the acquisition of one business by another. It stands for value that could provide the purchasing business a competitive edge. The percentage of the purchase price that is greater than the total net fair value of all the assets acquired in the acquisition plus the liabilities taken on during the process is known as goodwill.
Aspects of goodwill include the value of a company's name, brand recognition, devoted clientele, strong customer service, positive staff relations and proprietary technology.
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an advertiser is interested in generating conversions through display ads, but they're relying on the campaign's help to set bids. which two bidding strategies used in display campaigns can they choose from to automatically set their bids? choose two.
Smart display campaigns are one type of fully automated advertising. He can use the "Target CPA" and "Target ROAS" bidding strategies to automatically establish his bids.
What is Target CPA and Target ROAS?A Smart Bidding approach called Target CPA bidding automatically sets bids to maximize conversions (customer actions). When developing the Target CPA (target cost-per-action) bid strategy, you specify an average cost for each conversion.
The Target ROAS is the average conversion value (such as revenue) that you would want to get for each dollar spent on advertising. Keep in mind that the number of conversions you get may be impacted by the ROAS you desire. For instance, setting a goal that is too high may result in fewer people seeing your ads. Paul can rely on the Smart Display campaign if he lacks faith in his ability to set up bids on his own.
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the value of an option if it were to immediately expire, or its lowest possible value, is called an option's value.
An option's value is its lowest potential value or what it would be worth if it expired right away.
The statement is true.
The phrase "option value" in cost-benefit analysis and social welfare economics refers to the value assigned to private willingness to pay for maintaining or sustaining a public asset or service even when there is little to no chance that the person would ever use it.
An expiration date is specified for each option contract. Because it restricts the amount of time you have to buy, sell, or execute the option contract, the expiration date has a substantial influence on the value of the option contract. An option contract will cease trading and either be exercised or expire worthless after its expiration date.
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A recent stock market boom has increased household wealth by $20 billion, which initially increases consumption by $12 billion, and the marginal propensity to consume in the economy is equal to 0.5.
After the multiplier effect, aggregate spending (AD) will ____________ (increase/decrease) by $________ billion.
increase; 24 ((1/(1-0.5) x 12)
After the multiplier effect, aggregate spending (AD) will be $480billion
How to compute multiplier effect?In macroeconomics, the multiplier effect shows how a factor of proportionality measures how much an endogenous variable changes in response to a change in some exogenous variable.
The multiplier effect is given by the formula
Multiplier effect=[tex]\frac{1}{1-MPC}[/tex]
where MPC=marginal propensity to consume
The given parameters are:
MPC=0.5
Increase in household=$20
Increase in consumption=$12
ME=[tex]\frac{1}{1-0.5}[/tex]
⇒ 1*0.5
=2
Therefore the aggregate increase will be $20(2)*12
=$48
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