Answer:
<em>Labour rate variance = $260 favourable</em>
Explanation:
<em>The rate variance would be the difference between the standard labour cost of the 2,300 units sold and the actual labour cost</em>
Standard labour cost (3600/1200× 2300)<em> 6,900</em>
<em>Actual labour cost </em><u><em>6, 640</em></u>
<em>labour rate variance </em><u><em> $260</em></u><em> favourable</em>
The variance is favourable because the StuckinMyHouse book company saved $260 as a result of of his actual cost been less than the expected cost.
Answer:
market net operating profit per square foot = $8.80
Explanation:
total investment = $145 per square foot
the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot
total revenue per square foot = $11
proportional market vacancy and credit loss = $11 x 5% = ($0.55)
<u>other expenses = $11 x 15% = ($1.65) </u>
market net operating profit per square foot = $8.80
The project should be carried out since the net operating profit is larger than the investor's required rate of return.
Answer:
4. The obligation for payment of the commission is whichever compensation arrangement box is checked.
Explanation:
Exclusive right-to-buy contracts is one of the most common buyer-broker agreement between buyers and brokers or sellers.
This agreement outlines the obligations of the broker, the broker-agent relationship, and the responsibilities of the buyer.
Whatever is agreed on between the buyer and the seller or broker is the obligation for payment of commission and this will be strictly adhered to by both parties.
Answer:
Explanation:
Porter's generic strategies determine how the company will gain competitive advantage within the selected market. Lower cost, differentiated or focus strategies could be included. The company chooses one of the two types of competitive advantages either by lower costs than competition or by differentiating between customers' value to achieve higher prices. A company also chooses two types of products that offer its products to selected market segments or industry levels and offer products in many market segments. The generic strategy reflects the choices made by both the type and the degree of competitive advantage.
1)Cost Leadership Strategy: This generic strategy requires you to be the cheapest producer in an industry for a certain level of quality. The firm sells its products at a price higher than its competitors or below average industry prices to gain market share. In the case of price war, the firm may gain some profit while suffering from competition. Even if there is no price war, firms that can produce cheaper in the time of industry growth and falling prices will remain profitable for longer. Cost leadership strategies generally target the wider market.
Each common strategy has risks, including low cost strategies. For example, other firms may also reduce costs. As technology develops, competition can increase production power and thus eliminate competitive advantage. In addition, many companies that implement a focus strategy and target different narrow markets may earn less in their segments and gain significant market share as a group.
2)The differentiation strategy requires the development of a unique product or service for its customers and offers unique features that recognize whether customers are better or different than their competitors. The added value of the product with the uniqueness of the product may allow the company to earn a premium for the product. The risks associated with differentiation strategies include imitating competitors and changing customer tastes. In addition, different firms that implement focus strategies can achieve greater diversity in market segments.
3) Focus strategies are focused on a narrow segment and seeks to achieve cost advantage or differentiation in that segment. The main pillar is better service, focusing on the needs of the group. Using a focus strategy, the firm often has high customer loyalty, which prevents other firms from competing directly. There are some risks, such as imitating focus strategies and making changes to your target segments. In addition, it can be quite easy for a broad market value leader to adapt products directly to the competition. Finally, other focus areas can create sub-segments where they can better serve.
