Advanced analysis assume that the consumption schedule for a private open economy is such that consumption is: c = 60 + 0.8y assume further that planned investment ig and net exports xn are independent of the level of real gdp and constant at ig = 40 and xn = 10. government spending (g) is equal to $0. recall also that, in equilibrium, the real output produced (y) is equal to aggregate expenditures: y = c + ig + g + xn

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times