<span>Call cost per minute = $0.04
Number of minutes talked = 550
Call charges for 550 minutes @ $0.04 = $22
We should add the monthly charge of $6 to this call charges because that too is a part of our call cost. So the total cost would be $22 + 6 = 28.</span>
Answer:
Rodgers can hedge its foreign risk by using a Contract to buy Yuan in the futures market today at an agreed upon price in 90 days.
Explanation:
Solution
Since Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan, so he has to hedge his exchange rate risk by buying or purchasing Yuan future contract for 90 days.
So, Rodgers Incorporation should make a contract to buy Yuan in the future market today at an agreed price in 90 days.
Answer:
a. $ 90,000 cost decrease
Explanation:
The computation in the change in the amount of differential cost is shown below:
= (Unit cost by ignoring the fixed cost) - (unit cost to manufacturing the purchase cost) × number of units purchased
= ($12 - $15) × 30,000 units
= $3 × 30,000 units
= $90,000 decrease
And the other information which is given in the question is not relevant. Hence, ignored it
