Answer:
1. Lending to people of poor credit history
2. Yes
Explanation:
1. What is a "subprime mortgage,"
<em>Subprime mortgages by definition is the act of lending money to people of poor credit history or bad credit rating.</em>
<em />
2. Would a subprime borrower be likely to pay a higher or a lower interest rate than a borrower with a better credit history?
Just like the name suggests, subprime will mean lending at a rate higher than the prime rate which means they pay higher interest rates because the fact that they have poor credit ratings or history means that they are more likely to default,
It is hence logical that since the risk of lending to them is higher, they need to compensate for that by paying a higher interest rate.
Answer:
40%
Explanation:
Contribution margin = Contribution ÷ Sales × 100
= 72,000 ÷ $180,000 × 100
= 0.4 × 100
= 40%
Please not that other information given in the question are not relevant in arriving at the contribution margin ratio hence will be ignored.
Answer:
The correct answer is A
Explanation:
Support department is the department which provides support to the other departments so that they could complete their orders. And the budgeted cost to the support department is $150,000 but the actual amount of cost incurred is $200,000.
The aggregate amount which should be allocated to the other department will be $150,000, as it consider the budgeted amount.