Answer:
product development
Explanation:
Product development growth strategy -
It is based on the modification of the existing product , so that they appear to be new and the development of the new products and then offering the product to the current or new market .
These types of strategy are adapted , when their is no scope of new opportunity foe the new company .
The strategy of product development is used in the question statement .
Answer:
total budgeted costs = $189,400
budgeted production = 1,000 units
standard rate = $189,400 / 1,000 = $189.40 per unit
total actual costs = $197,200
actual production = 1,120 units
actual rate = $197,200 / 1,120 = $176.07 per unit
- total fixed overhead variance = actual overhead costs - budgeted overhead costs = $197,200 - $189,400 = $7,800 unfavorable. The actual overhead expense was higher than the budgeted.
- controllable variance = (actual rate - standard rate) x actual units = ($176.07 - $189.40) x 1,120 units = -$14,929.60 favorable. The actual overhead rate was lower than the standard rate, that is why the variance is positive.
- volume variance = (standard activity - actual activity) x standard rate = (1,000 - 1,120) x $189.40 = -1,120 x $189.40 = -$212,128 favorable. More units where produced than budgeted, that is why the variance is positive.
Answer:
He must deposit $10,168.07 per year to reach the future value of $1,000,000.
Explanation:
Giving the following information:
Final value= 1,000,000
n= 25
Interest rate= 10%
We need to calculate the annual deposit necessary to reach the goal of $1,000,000.
To calculate the annual deposit, we need to use the following variation of the future value formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,000,000*0.1) / [(1.10^25) - 1]
A= $10,168.07
He must deposit $10,168.07 per year to reach the future value of $1,000,000.
Answer and Explanation:
The computation is shown below:
a. The expected return of equity is
= Expected return + debt to equity ratio × (expected return - debt cost to capital)
= 15.2% + 0.5 × (0.152 - 0.05)
= 20.3%
b. Now the debt cost of capital is 7%
So, the expected return of equity is
= Expected return + debt to equity ratio × (expected return - debt cost to capital)
= 15.2% + 0.5 × (0.152 - 0.07)
= 27.5%
c. As we know that if the investment has a higher return than of course it has high risk also or we can say it is compensated by high risk
So it would be best shareholder interest
