Answer:
The correct answer is letter "B": industry-wide differentiation.
Explanation:
Industry-wide differentiation is a technique used by companies when they diversify their line of goods to reach unexplored sectors of the market and increase their chances of collecting higher revenue. Normally, this practice is carried out by large entities with enough funds for investment and covering risks.
The correct answer is A.
Partnerships are at an advantage over a sole proprietorship in terms of raising money. While a sole proprietorship only has the money from the proprietor, a partnership has money from all of the partners.
Based on the information given the predetermined overhead rate is 31.89 per direct labor hour.
<h3>Predetermined overhead rate</h3>
Using this formula
Predetermined Overhead rate = Estimated manufacturing overhead / Estimated total labor hours
Let plug in the formula
Predetermined Overhead rate = [$1,026,260 + (46,000×6.25)] / 41,200
Predetermined Overhead rate =1,313,760/ 41,200
Predetermined Overhead rate = 31.89 per direct labor hour
Inconclusion the predetermined overhead rate is 31.89 per direct labor hour.
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Answer:
Cost of equity = 11.7%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.</em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate,-4%, β= Beta-1.10, (Rm-Rf) = 7% ,Ke = cost of equity
Using this model,
Ke=4% + 1.10×7%
= 11.7 %
Cost of equity = 11.7%
