Answer:
c. $125.00
Explanation:
Let us assume the x for invested in portfolio
Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return
x × 7% + (1 - x) × 3% = 8%
7% x + 3% - 3% x = 8%
4% x = 5%
X = 1.25
Now the invested amount would be
= 1.25 × $500
= $625
So, the borrowed amount would be
= $625 - $500
= $125
Answer:
Predetermined manufacturing overhead rate= $35.65 per machine hour
Explanation:
Giving the following information:
Estimated the machine-hours= 45,900
The estimated variable manufacturing overhead was $7.53 per machine-hour.
The estimated total fixed manufacturing overhead was $1,290,708.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (1,290,708/45,900) + 7.53
Predetermined manufacturing overhead rate= $35.65 per machine hour
Answer:
A. wastefulness - production inside PPC ; B. Economy growth - PPC shift outwards/rightwards ; C. Economy at Productive Efficiency - production on PPC ; D. Unattainable Production- Outside PPC
Explanation:
PPC is graphical representation of production combinations that an economy can produce, given resources & technology.
PPC is based on assumption : That resources are best efficiently utilised. So, all product combinations ON PPC reflect 'Economy is at Productive Efficiency'
All production points INSIDE PPC reflect inefficient utilisation of resources i.e 'Wastage'
Points OUTSIDE PPC are 'Unattainable Product Combinations'- as they are beyond economy's best optimum production, given resources & technology.
'Economic growth' is increase in resources &/or technology which increases economy's production potential and PPC curve SHIFTS rightwards or outwards.
Answer:
real options perspective
Explanation:
A real options perspective means that the investor has the right but not the obligation to invest in the other company, and/or has the right to buy it, but it is not required to do so. In this case, Fervana can invest if it considers it suitable or it can buy the start-up, buit it doesn't need to do anything if it doesn't want to.
Answer:
C) allows existing customers to upgrade to a newer model by trading in their older model.
D) though it previously offered free delivery, now charges for deliveries made outside the city.
Explanation:
If ABC company wants to change low profit customers into more profitable customers, they need to:
- encourage low profit clients to buy larger quantities by offering promotions (e.g. get a discount if you buy a bike, helmet and other gear all together)
- forgo certain services or features to low profit customers, e.g. free delivery only for expensive bikes
- increase the price of your product for low profit customers (e.g. charge a delivery cost for cheap bikes)
- offer upgrading options to low profit clients
