Answer:In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods, or services of a communal nature do not pay for them. Free riders are a problem because while not paying for the good, they may continue to access it.
Explanation:
Answer: $6.10 per direct labor hour
Explanation:
Predetermined shop overhead rate = Estimated Overhead costs / Estimated Direct labor hours
Estimated overhead costs:
= Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
= 37,900 + 105,300 + 19,100 + 14,600
= $176,900
Estimated direct labor hours
= Shop direct labor / Average Direct labor rate
= 406,000 / 14
= 29,000 hours
Predetermined shop overhead rate = 176,900 / 29,000
= $6.10 per direct labor hour
Answer:
c. A general manager defining a superior customer service strategy for his division to better deliver its products.
Explanation:
Business Level Strategies focuses on satisfying the needs of customers and then aiming to earn more than the average return.
For any organization which aims to grow needs to know its customer properly, about the needs, demands, as it can only grow if the customer satisfaction is maximum.
In the given instance, the statement "c" focuses on specific customer strategy to ensure that the department or division in concern will deliver to customer the better version of services.
As this aims for maximum satisfaction for customer, this is the correct example of Business Level Strategies.
Answer:
The correct answer would be, Customer's life time Value.
Explanation:
Subaru is an automobile company who is famous for its boxer engines in the cars above 1500 cc. Subaru is a division of Japanese transportation conglomerate.
A representative of Subaru has solid relationship with a customer, Phil. Phil is such a satisfied customer that he only wants Subaru every time he goes for a new purchase. Also he refers a lot of people to Subaru. The representative determines that if Phil continue to do so, his total value to the company would be $350,000. This figure includes Phil purchases as well as the purchases made by the people which he referred to Subaru. So this means, the representative has calculated the Phil's Lifetime Value.
Answer:
Portfolio Return = 11.975%
Explanation:
The portfolio return is calculated by taking the weights of individual securities in a portfolio and multiplying them by the return of individual securities. The formula can be written as,
Portfolio return = wA * rA + wB * rB
Where,
- wA is the weight of security A
- rA is the return on security A
- wB is the weight of security B
- rB is the return on security B
The risk free asset has a beta of zero.
Let the weight of risk free asset be x. The weight of risky asset is 1-x.
Portfolio beta = 0.975 = x * 0 + (1-x) * 1.3
0.975 = 1.3 - 1.3x
0.975 - 1.3 = -1.3x
-0.325 / -1.3 = x
x = 0.25
Portfolio return = 0.25 * 0.032 + (1-0.25) * 0.149 = 0.11975 or 11.975%
