Answer:
Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:
1) The keynesian multiplier is smaller.
The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.
2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.
Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.
Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.
Answer:
See explanation section
Explanation:
The examples of variable cost per unit are as follows:
1. Direct Materials per unit;
2. Direct wages per unit;
3. Variable manufacturing overhead per unit;
4. Variable selling expense per unit;
5. Variable administrative expense per unit.
If all the expenses are given in accounting math, we have to add all the expenses per unit to determine the variable cost per unit.
According to the question, as there are 18000 units are produced and sold, we have to multiply the variable cost per unit by the total number of units.
Answer: Workload
Explanation:
The workload approach is one of the type of method that set the size of the sales force and also helps to reduce the complexity.
- It higher the volume of the products for establish the practice between the customers and manufacturing the products.
- The workload approach mainly focus on the various types of management issue such as marketing communication, market sharing goals and the pricing and the investment.
Therefore, Workload approach is the correct answer.
Answer:
The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding
Explanation:
We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.
Present value=future cash flow/(1+required rate of return)^n
n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow
NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000
NPV=$75.24
