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Anvisha [2.4K]
1 year ago
14

Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced

ing statement is valid or invalid.
a. The statement is valid, because the nominal interest rate is the sum of the real interest rate plus inflation, so higher inflation rates would result in higher interest rates.
b. The statement is invalid, because the nominal interest rate is independent of the inflation rate.

If companies borrow from countries with low interest rates, the potential gains from the interest savings will likely be ______________ by the losses from currency appreciation. The currency of a country with a higher inflation rate than the U.S. inflation rate will ____________ over time against the dollar.
Business
1 answer:
lys-0071 [83]1 year ago
6 0

Answer:

b.the statement is invalid because the nominal

Explanation:

pa brainliest po

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Probably goes either way 
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A tenant's landlord plans to sell the building in which the tenant lives to the state so that a freeway can be built. the tenant
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Bramble Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear
Dima020 [189]

Answer:

The break even in dollars is $23000000

Explanation:

The break even point in dollars is the amount of revenue which produces no profit or no loss and where total revenue equals total cost. The break even in dollars is calculated by dividing the fixed cost by the weighted average contribution margin ratio.

Break even in dollars = Fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio is the contribution margin ratio of each products multiplied by the products weight in the sales mix.

Weighted average contribution margin ratio = Weight in sales mix of Product A * contribution margin ratio of product A + Weight in sales mix of Product B * Contribution margin ratio of Product B

Weighted average contribution margin ratio = 0.65 * 0.3 + 0.35 * 0.5  = 0.37

Break even in dollars = 8510000 / 0.37

Break even in dollars = $23000000

3 0
3 years ago
Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $2
Norma-Jean [14]

Answer:

The best course of action is to increase the selling price by 10%.

Explanation:

Giving the following information:

sales $392,000 (units 4,900)

variable costs (247,000)

fixed costs (96,000)

Current net income= 49,000

<u>First, we need to calculate the unitary selling price and variable cost:</u>

Selling price= 392,000 / 4,900= $80

Unitary variable cost= 247,000 / 4,900= $50.41

<u>Now, we will calculate the impact on net income of each variation:</u>

Increasing selling price by 10%:

Selling price= 80*1.1= $88

Effect on income= 8*4,900= $39,200 increase

<u>Reduce variable costs to 57% of sales.</u>

Unitary variable cost= 80*0.57= $45.6

Effect on income= (50.41 - 45.6)*4,900= $23,569 increase

<u>Reduce fixed costs by $22,000.</u>

Effect on income= $22,000 increase

6 0
3 years ago
Horizontal Analysis Total assets were $1,000,000 in 2019, $900,000 in 2018, and $950,000 in 2017. What was the percentage change
Sergeeva-Olga [200]

Answer:

(a) Decreases by 5.3%.

(b) Increases by 11%.

Explanation:

Given that,

Total assets in 2019 = $1,000,000

Total assets in 2018 = $900,000

Total assets in 2017 = $950,000

Percentage change from 2017 to 2018:

= [(Total assets in 2018 - Total assets in 2017) ÷ Total assets in 2017] × 100

= [($900,000 - $950,000) ÷ $950,000] × 100

= (-$50,000 ÷ $950,000) × 100

= -0.053

= -5.3%

Therefore, the total assets from 2017 to 2018 decreases by 5.3 percent.

Percentage change from 2018 to 2019:

= [(Total assets in 2019 - Total assets in 2018) ÷ Total assets in 2018] × 100

= [($1,000,000 - $900,000) ÷ $900,000] × 100

= ($100,000 ÷ $900,000) × 100

= 0.11

= 11%

Therefore, the total assets from 2018 to 2019 increases by 11 percent.

7 0
3 years ago
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