Answer:
6.86011 Turkish liras per US dollar
Explanation:
US's inflation 3% for the next 3 years
Turkey's inflation 7% for the next 3 years
current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)
- inflation rate US = (1 + 0.03)⁵ = 1.159274
- inflation rate Turkey = (1 + 0.07)⁵ = 1.402552
difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011
Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.
Answer:
The gross profit margin of Candy Company is 65% (second option)
Explanation:
The gross profit margin is defined as:
Mg = (sales - costs) / price of sales
If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:
Mg = ($320,000- $112,000) * 100% / $320,000 =
Mg = $208,000 * 100% / $320,000 = 0.65 * 100%
Mg = 0.65 * 100%
Mg = 65%
Answer: $379,500
Explanation:
Total Sales = <em>Break-even sales + Margin of Safety </em>
The Break-Even sales are therefore = 100% - 20%
= 80% of sales
Total Sales is therefore;
Break-even = 80% * Total Sales
Total Sales = Break-even/80%
= 759,000/0.8
= $948,750
Assuming no fixed costs, actual profit will be Sales less Variable expenses;
=Sales - Variable expenses
= 1 - 60%
Actual profit = 40% * Sales
= 40% * 948,750
= $379,500
<span>Future Business Leaders of America (FBLA) is a non-profit organization that helps students for their careers. The Chevron Corporation provided a grant to fund a program called "Getting Involved" in the 1980s to expose young people to capitalism through Future Business Leaders of America.</span>
