Suppose the market portfolio's excess return tends to increase by 30% when the economy is strong and decline by 20% when the eco

Answer:

He will incur a charge of $2000 due to a special assessment tax for the sidewalk.

Explanation:

The information provided indicates that the lot in question is an interior one, suggesting we should assess only one dimension of the property since the sidewalk is constructed at either the front or the rear.

The lot size is 100 feet in width and 500 feet in length.

The cost for constructing the sidewalk is $40 per linear foot.

The city will pay half of the total expense.

100 feet multiplied by $40 equals $4000.

The city contributes 50% of the expense, meaning the homeowner is responsible for the remaining 50%.

Thus, the homeowner's share will be 50% of $4000, which is calculated as 0.5 times $4000, yielding $2000.

He will incur a charge of $2000 due to a special assessment tax for the sidewalk.

Answer:

The answer to the question is A.

Explanation:

To start, we differentiate between fixed and variable elements:

Fixed costs:

Advertising costs $20,000

Office costs $12,000

Other expenses $10,000

Variable costs:

Delivery costs $25,000

Commission costs $75,000

Other variable costs $20,000

Total amount $120,000

Next, we find the ratio of variable costs to total sales:

Total selling expense ratio = 120,000/2,500,000 = 0.048

For each of the variable costs:

Delivery costs = 25,000/120,000 = 0.20

Commission costs = 75,000/120,000 = 0.63

Other variable costs = 20,000/120,000 = 0.17

Lastly, for sales amounting to $3,400,000:

Total variable cost = 3,400,000 * 0.048 = $163,200

Commissions = 0.63 * 163,200 = $102,816

Answer:

B). targeting strategy and marketing mix

Explanation:

The options available for the question are;

a. locational excellence strategy.

b. targeting strategy and the marketing mix.

c. supply chain management.

d. operational excellence strategy.

e. strategic business unit control.

The question indicates that people globally recognize Pepsi as their primary choice for a refreshing beverage.

This positioning reflects Pepsi’s diligent execution of its targeting strategy and marketing mix. This concept in finance is known as targeting strategy, which is vital for market segmentation, identifying products that will appeal significantly to each consumer segment.

Additionally, Pepsi employs the marketing mix strategy, a vital tool for managing its target market. It oversees Product, Price, Place, and Promotion to enhance demand for its goods.

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. To determine the predetermined overhead rate appropriate for each department.

Given

Cutting Department

The Cutting Department calculates its rate based on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

For the Finishing Department, the rate is calculated based on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department's rate is based on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ This was calculated

The Finishing Department's calculations rely on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If the business utilizes a company-wide overhead rate linked to direct labor cost and if jobs have increased machine hours paired with lower labor costs, they would incur less overhead expenses.