Answer:
Fixed Overheads Spending Variance = $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = $20,000 Favorable (F).
Explanation:
Fixed Overheads Spending Variance = Actual Fixed Overheads - Budgeted Fixed Overheads
= $305,000 - $300,000
= $5,000 Unfavorable(U).
Fixed Overheads Spending Variance = Fixed Overheads at Actual Production - Budgeted Fixed Overheads
= ($5.00 × 64,000) - $300,000
= $320,000 - $300,000
= $20,000 Favorable (F)
Answer:
Premium, value
Explanation:
Premium Pricing Strategy: this a strategy used by companies to drive up the prices for their products. This strategy is used when customers can be convinced that a company will offer a higher value than its competitors.
For example, looking at the prices of a Rolls Royce Phantom and a Toyota, one costs $450,000 and the other costs $25,000, both will take you from your office to your house, but some customers will prefer to buy the Rolls Royce, this is because of the value the Rolls Royce offers.
Value: this is the worth or usefulness of something. Therefore, if a company can offer value for money, customers will be willing to pay.
Answer:
Hi
Explanation:
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Answer:
10.57%
Explanation:
Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.
ROI = Net Income / Cost of Investment
For Tommy,
The initial investment is 35 x $45.75 =$1,601.25
The gains from the investments
Dividends of $82.45
Gains in share value = 35 x ($48. 75 -$45.43)
35 x 2.48 =$86.8
Net gains will be $82.45 + $86.8= $169.25
ROI = $169.25/$1601.25
ROI =0.10569 X 100
=10.57%