Answer:
If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?
Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000
she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year
What might prevent her from perfectly smoothing consumption?
First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.
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Answer:
supply chain is a system of organizations, people, activities, information,
Explanation:
hope that works
Answer:
Effect on income= $12,038 increase
Explanation:
Giving the following information:
Variable costs as a percentage of sales for Lemon Inc. are 74%
How much will operating income change if sales increase by $46,300.
<u>To calculate the effect on income, we need to calculate the increase in total contribution margin:</u>
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Total contribution margin change= 46,300*(1-0.74)
Total contribution margin change= $12,038 increase
Effect on income= $12,038 increase