Answer:
<em>False</em>
Explanation:
<em>Subprime lending means lending to borrowers and charging interest that is </em><u><em>above</em></u><em> the current prime interest rate. </em>
The <em>current prime interest</em> refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.
The <em>sub-prime lending</em> refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.
Answer:
Standard fixed overhead rate
= Budgeted fixed overhead cost
Budgeted direct labour hours
= $45,000
15,000 hours
= $3 per direct labour hour
Fixed overhead volume variance
= (Standard hours - Budgeted hours) x Standard fixed overhead rate
= (12,000 hours - 15,000 hours) x $3
= $9,000(U)
The correct answer is B
Explanation:
In this case, we need to calculate standard fixed overhead rate, which is budgeted fixed overhead cost divided by budgeted direct labour hours. Then, we will calculate fixed overhead volume variance, which is the difference between standard hours and budgeted hours multiplied by standard fixed overhead rate.
Answer: A. An automobile company promotes small family cars and sports utility vehicles to a specific demographic.
Explanation:
Differentiated marketing is a form of marketing that occurs when the advertisement that is done by a particular company appeals to some particular target audiences or segments. Thus is usually done by the company to get ire customers and also enhance the brand awareness.
In this case, the activity that is an example of differentiated marketing will be option A. "An automobile company promotes small family cars and sports utility vehicles to a specific demographic".
Answer:
$523,800
Explanation:
Given parameters:
Cost price by buyer = $525000
Selling price by seller = $485000
Sales tax = 8%
Unknown:
The lowest selling price by the seller = ?
Solution:
To solve this business problem, we must understand that the price the seller would be will to part with will be his selling price and the percentage of sales tax incurred in the procurement.
This will be the minimum and least profitable estimated amount the seller is willing to sell at.
Lowest selling price = selling price by seller + amount of sales tax incurred
Sales tax amount = selling price x sales tax percentage
= $485000 x 
= $38800
Lowest selling price = $485000 + $38800 = $523,800
