Answer:
d. Fall to $1.47
Explanation:
currently you will need $1,500 to purchase £1,000 and invest in British bonds. After 65 months you will have £1,040, which you should be able to convert into $1,544.40. If you invested in US bonds, you would have $1,530, so this arbitrage will yield $14.40.
But if instead the British pound fell to $1.47, then your profit would only be $28.80, less than if you invested in US bonds. You again would have £1,040 in 6 months, but that would only be equal to $1,528.80.
Answer:
$1.45
Explanation:
Data provided in the question
Variable cost per component = $1.45
Full cost = $1.91
Selling price per component = $4.95
By considering the above information, the lowest price that would be accepted for the component is equal to the variable cost per unit i.e $1.91 and plus the full cost includes both the variable and fixed cost plus the fixed cost would be recovered by normal sale also
So in this case we only considered the variable cost per component
Answer:
D
Explanation:
It was never made when Earth was made
Answer: $57,600
Explanation:
The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.
Materials
= Alternative B costs - Alternative A Costs
= 56,000 - 24,000
= $32,000
Processing Costs
Alternative B costs - Alternative A Costs
= 30,000 - 30,000
= $0
Equipment Rental
= Alternative B costs - Alternative A Costs
= 28,100 - 10,200
= $17,900
Occupancy Costs
= Alternative B costs - Alternative A Costs
= 26,800 - 19,100
= $7,700
Adding them all up we get,
= 7,700 + 17,900 + 32,000
= $57,600
$57,600 is the differential cost of Alternative B over A.
b. financial intermediaries
Financial intermediaries are financial institutions whereby savers can indirectly provide borrowers with funds.
