Answer:
d. transaction loss; $3,695
Explanation:
Calculations:
Today ¥110.58 can be exchanged by $1
<h3>US firm to pay today = 100,000,000/110.58 = 904322.66</h3>
US firm had to pay $904322.66 today.
US firm chooses to pay three months after the transaction and do not uses any hedging technique.
Three months later on settlement date ¥110.13 can be exchanged by $1, so less ¥ can be exchanged now than three months ago ( ¥110.58). Now US firm would incur transaction loss. Translation loss/gain occurs when balance sheet of a firm is converted from one currency to another.
<h3>US firm to pay 3 months later = 100000000/110.13 = 908017.79</h3>
US firm to pay $904322.66 three months later
<h3>Transaction gain/loss = $904322.66 - $908017.79 = -$3695.13 </h3>
So US firm incurs loss of $3695.13, rounded off to $3695
Answer:
1. In 2021, Capitalized interest = $205,000
2. In 2022, Capitalized interest = $3,870,000
3. Total cost = $5,231,980
Explanation:
See the attached file for the calculation
Answer:
$22.50 per unit
Explanation:
Mark -up is the percentage of cost that is earned as profit.
Using mark-up,
Selling price = Total cost + total profit
Total cot = Fixed cost + variable cost
Total costs = $400,000 + (10× 50,000)
= $900,000
Sales revenue = 125%× 900,000
= 1,125,000
Selling price per unit = Sales revenue/units
=1,125,000/50,000
= $22.50 per unit
That answer is True because it says that the lowest possible quality and it is true
