As the company recently changed its business model from just selling explosives to managing an entire blast in a quarry. This customer-solution-based approach to the sale of explosives is an example of systems selling.
<h3><u>
What is a Business Model?</u></h3>
- The strategy a business uses to turn a profit is referred to as its business model. It lists any estimated costs as well as the goods or services the company intends to sell, as well as its chosen target clientele.
- Both new and established businesses need strong business models. They aid young, developing businesses in luring capital, hiring talent, and inspiring management and personnel.
- Established companies should change their business strategies on a regular basis to account for emerging trends and difficulties. Investors use business plans to assess potential investments.
- A business model is a comprehensive strategy for running a company profitably in a particular industry. The value proposition is a key part of the company model.
Systems selling is the practice of offering linked products or services as a unit rather than individually or independently. Products that are combined under systems selling are typically complementary products.
Therefore, This customer-solution-based approach to the sale of explosives is an example of systems selling.
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Answer:
Direct labor efficiency variance= $9,360 unfavorable
It is unfavorable because it took longer to produce 975 units than the standard time estimated.
Explanation:
Giving the following information:
Standard direct labor hour per unit= 7.2 hours
Standard rate= $13
Actual units= 975
Actual hours= 7,800
Actual rate= $12.44
<u>The direct labor time variance is also known as the direct labor efficiency variance. It calculates the effect on costs of the time required to produce the actual amount of units.</u>
We need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 975 units*7.20= 7,020 hours
Direct labor efficiency variance= (7,020 - 7,800)*12= $9,360 unfavorable
It is unfavorable because it took longer to produce 975 units than the standard time estimated.
Answer:
new beta of the portfolio= 1.235
so correct option is b. 1.235
Explanation:
given data
investment = $10,000
common stocks = 20
total investment = $200,000
portfolio beta = 1.2
sell one stocks beta = 0.7
sell = $10,000
purchase another stocks beta = 1.4
to find out
What will be the beta of the new portfolio
solution
we first find increment in beta that is express as
increment in beta = investment × ( purchase stocks beta - sell stocks beta) ÷ total investment .............................1
put here value we get
increment in beta = 
increment in beta = 0.035
so
new beta of the portfolio will be
new beta of the portfolio = 1.2 + 0.035
new beta of the portfolio= 1.235
so correct option is b. 1.235
Answer:
$70,875
Explanation:
By definition, a flexible budget is when a budget has been adjusted or flexed to accommodate the changes in the level of activity.
If the company wanted to create a flexible budget for 9,000 units, then the value that would be recorded for variable costs will be:
Indirect materials, $22,000/8000*9000 = 24,750;
Indirect labor, $25,000/8000*9000 = 28,125 ;
Utilities, $12,000/8000*9000 = 13,500;
Supervision, $4,000/8000*9000=4,500
Total of variable costs = ........................70,875
Answer:
the cost of internal equity is 16.17%
Explanation:
The computation of the cost of internal equity is shown below:
= Yield of the bond + risk premium of the firm
= 10.28% + 4.95%
= 16.17%
Hence, the cost of internal equity is 16.17%
Basically we add the two things so that the cost of internal equity could be determined
