Answer:
$2,500 Increase
Explanation:
Lil Beasty Company
Variable cost per unit ($17 + $1.50) $18.50
Income per unit ($19 – $18.50) $0.50
The total increase in net income ($.50 X 5,000 units) $2,500
Therefore we have increase $2,500 meaning If the offer is accepted with unused capacity, net income will increase by $2,500. The variable cost per unit will be $18.50 ($17 + $1.50); the income per unit is $.50 ($19 – $18.50); and the total increase in net income will be $2,500 ($.50 X 5,000 units)
<u>b. It can only be used for one variable at a time</u> is the false statement regarding the use of simulation in multinational capital budgeting.
<u>Explanation</u>:
The process of determining the net present value of the project is known as multinational capital budgeting. The capital budget can be determined by estimating the present value of cash flow in the project and subtracting the initial expenditure required for the projects.
When considering the use of simulation in multinational capital budgeting, it can be used for many variables at a time.
The flow of cash is focused in the long-term investment projects. Multinational capital budgeting can help in determining investment opportunity of the company.
Answer:
MACROECONOMIC
Economics had been divided into two areas of study and they are:
Microeconomics and
Macroeconomics.
Microeconomics is a study that shows individual economic actors, such as consumers, households and firms, in decision-making. This is on an individual level. But MACROECONOMICS shows the national economy as a whole which is the aggregate outcomes of those individual decisions. So the increase in consumer confidence is macroeconomics since it raises the overall level of consumption. This is because macroeconomics studies price levels, inflation and is concerned about the general economy factor using the rate of economic growth, national income, aggregate measures of gross domestic product (GDP) to show the results of individual, micro-level decisions.