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2 years ago

Suppose the japanese yen exchange rate is ¥73.47 = $1, and the british pound exchange rate is £1 = $1.53.

Business

1 answer:

sineoko [7]2 years ago

5 0

Answer: Cross-rate can be found by using the given formula ,

$¥73.47 = $1\\£1 = $1.53$

So,

$£1 = $1.53 $1 = \frac{£1}{1.53} $1= £0.6536$

Substituting this into the exchange rate for Yen and dollars, we get

$¥73.47 = $1 ¥73.47 = £0.6536$

$¥73.47/0.6536 = £1 ¥112.4082=£1$

Cross-rate in terms of Yen per Pound is 112.41

b. If cross-rate is $¥115=£1$ , this means that Yen is quoted high relative to pound. So, the arbitrage profit per dollar will be,

Suppose we take a a loan for $1 and buy £0.6536. Then we use the pounds to purchase yen at the cross-rate, so we have

£0.6536 (¥115/£1) = ¥75.164

Now, we replay the loan in dollars by exchanging Yen back to dollars. The cost to repay will be:

¥75.164($1/¥73.47) = $1.02305

Your arbitrage profit is $0.02305 per $1 used.

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Which of the following has given consumers unprecedented power to express likes and dislikes, compare prices, find the best deal

STatiana [176]

Answer:

The correct answer is letter "A": Digital technology.

Explanation:

When talking about commerce, digital technology has allowed buyers and sellers from different parts of the world find and offer goods and services without the need to physically meet. The transaction also includes all the steps and efforts necessary to deliver consumers the product at the door of their houses.

Besides, digital technology has allowed consumers to express their ideas massively based on the experience they had with the digital vendors and price so other prospective consumers have an idea of the service provided by the merchant is good or if they should look for a different seller.

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2 years ago

Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At

SVETLANKA909090 [29]

Answer:

$165,500

Explanation:

Given that,

Sales (4,900 × $90) = $ 441,000

Cost of goods sold (4,900 × $38) = 186,200

Gross margin = $ 254,800

Selling and administrative expenses = $75,000

Net income = $ 179,800

Production costs per tennis racket total = $38

Variable production cost = $25

Fixed production cost = $13

Units produced = 6,000

Contribution margin:

= Sales - Variable production costs

= $441,000 - (4,900 × 25)

= $441,000 - $122,500

= $318,500

Fixed costs = Fixed production costs + Selling and administrative expenses

= ($13 × 6,000) + $75,000

= $78,000 + $75,000

= $153,000

Net income under variable costing:

= Contribution margin - Fixed costs

= $318,500 - $153,000

= $165,500

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2 years ago

A product sells for $250 per unit, and its variable costs per unit are $181. The fixed costs are $430,000. If the firm wants to

brilliants [131]

Answer:

$6600

Explanation:

Given: Selling price= $250 per unit

Variable cost= $181 per unit.

Fixed cost= $430000.

Expected Profit= $25400.

Let´s assume the number of units sold be "x".

Revenue (R) = $250\times x= \$250x$

Cost of product (C)= $\$ 181\times x+ \$ 430000$

∴ Cost of product (C)= $\$ 181x+ \$ 430000$

Now, finding the number of unit sold.

Forming an equation for profit.

We know, Profit= $Revenue-cost$

⇒ $\$ 25400= 250x- (181x+430000)$

Opening parenthesis.

⇒ $25400= 250x- 181x- 430000$

⇒ $25400= 69x- 430000$

Adding both side by 430000

⇒ $455400= 69x$

Dividing both side by 69

⇒ $x= \frac{455400}{69}$

∴ $x= 6600 units$

Hence, total number of units sold to earn $25400 is 6600 units.

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3 years ago

Teozocior.01.010

Vladimir [108]

Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

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3 years ago

2. What kind of good is it? Determine whether each of the following goods is a private good, a public good, a common resource, o

erastovalidia [21]

Answer:

1- A cabana along a beach that is open to the public --- Common resource

2- A new drum set for you to play in your friend's band --- Private good

3- A large, beautiful statue in a town square --- Public good

Explanation:

1- Common resources are goods that are not excluded, but are rival. Not excluded means that no restrictions can be imposed on the use, such as paying a price, for example because there is no personnel or technical provision available to enforce this.

2- Private goods are defined as goods that are excluded and rival. Private goods are the opposite of public goods.

Excluded means that some consumers can be excluded from the use of this good. For example: Someone has bought a good and decides who uses the good.

In turn, rival means that, if used properly, it cannot be consumed again or simultaneously by others.

3- A public good is a commodity or service characterized by two basic characteristics: non-rivalry and non-excludability.

Non-rivalry means that a person's consumption of a commodity does not affect the quantity or quality of the same commodity that another person can consume.

Non-excludability means that it is impossible to exclude anyone from the consumption of an item (for example, because it did not pay for the item). Goods that hold only one of the properties are called semicollective goods, while the goods that possess both properties are called genuine collective goods.

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2 years ago