Answer:
The first method would use prefabricated building segments, would have an initial cost of $6.5 million.
Answer:
a. Total number of budgeted direct labor hours for the year = Direct labor hours for night lights + Direct labor hours for desk lamps
= 30,000*1/2 + 40,000*2
= 15,000 + 80,000
= 95,000 hours
b. Single plant-wide factory overhead rate using direct labor hours = Budgeted factory overhead / Budgeted factory hours
= $403,750 / 95,000 hours
= $4.25 per hour
c. Per unit factory overhead = Number of hours required to complete one unit * Factory overhead rate per hour
<u />
<u>Night light</u>
Per unit factory overhead = 0.5 * 4.25
Per unit factory overhead = $2.125 per unit
<u>Desk lamp</u>
Per unit factory overhead = 2 * 4.25
Per unit factory overhead = $8.50 per unit
monopolistic competition, if you are asking a question from plato
Answer:
D. going long in the futures contract, borrowing in the foreign currency, and going long in the domestic currency, investing the proceeds at the local rate of interest
Explanation:
Base on the scenario been described in the question, if a future contract is price below price implied by Covered Interest Parity (CIP), arbitrageurs could take advantage of the mispricing by simultaneously the going long in the futures contract, borrowing in the foreign currency, and going long in the domestic currency, investing the proceeds at the local rate of interest will go simultaneously.
Answer: Net Inflow / Appreciate / Decrease
Explanation:
When interest rates rise in an Economy relative to the rest of the world ceteris paribus, it has the effect of increasing the value of the Currency of the country in question.
This is because more people will want to invest in the country to take advantage of the higher interest rates. This Net Inflow of Financial Capital will lead to more demand for the American dollar which will as earlier mentioned, cause it to appreciate according to the laws of Demand and Supply.
As a result of the Dollar being stronger, US exports will be more expensive as they are quoted in dollars. Less people will buy it so US exports will decrease leading to a Decrease in Net Exports.
