What factors are not important in determining exchange rate fluctuations in the long run?

A construction company entered into a fixed-price contract to build an office building for $32 million. Construction costs incur

Delicious77 [7]

Answer:

company gained a gross profit of $2 million

Explanation:

Data provided in the question;

Contract price to build an office = $32 million

Construction costs incurred during the first year = $9 million

Estimated costs to complete at the end of the year = $21 million

Therefore,

Total cost incurred to complete the construction of the office at the end of the first year

= Construction costs incurred during the first year + Estimated costs to complete at the end of the year

= $9 million + $21 million

= $30 million

Thus,

The revenue generated by the company = Contract price - cost incurred

= $32 million - $30 million

= $2 million

since the revenue is positive, hence the company gained a gross profit of $2 million

8 0

3 years ago

A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold dr

sashaice [31]

This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.

4 0

3 years ago

Blake Company has $15,000 cash at the beginning of June and anticipates $50,000 in cash receipts and $34, 500 in cash disburseme

rodikova [14]

Answer:

balance of the loan = $4500

correct option is d. $4, 500

Explanation:

given data

cash at the beginning = $15,000

cash receipts = $50,000

cash disbursements = $34, 500

minimum cash balance = $10,000

maintains = $20,000

company owes = $15,000

to find out

balance of the loan

solution

we get here first excess that is

excess = $15,000 + $50,000 - $34, 500

excess = $30500

so used to loan replay will be here as

used to loan replay = $30500 - $20,000

used to loan replay = $10500

so balance of loan will be here

balance of the loan = $15,000 - $10500

balance of the loan = $4500

correct option is d. $4, 500

6 0

4 years ago

Saving is:a) the difference between real GDP and disposable income while savings is the difference between disposable income and

Bogdan [553]

Answer:

b

Explanation:

Saving is the difference between disposable income and consumption

Saving = disposable income - consumption

for example, if disposable income is $1000 and consumption is $600. Saving is $400

the higher consumption is, the lower saving would be. the lower consumption is, the higher saving would be

Savings is the total amount of money saved over a period of time

3 0

3 years ago

Patriot Co. manufactures and sells three products: red, white, and blue. Their unit selling prices are red, $20; white, $35; and

vagabundo [1.1K]

Answer:

a. break even number in units = $250,000 / $10.0908 = 24,775.04

red units = 24,775.04 x 5/11 = 11,261.38 ≈ 11,262 units

total sales = 11,262 x $20 = $225,240

white units = 24,775.04 x 4/11 = 9,009.11 ≈ 9,010 units

total sales = 9,010 x $35 = $315,350

blue units = 24,775.04 x 2/11 = 4,504.55 ≈ 4,505 units

total sales = 4,505 x $65 = $292,825

total sales = $833,415

b. new break even number in units = $300,000 / $19.4545 = 15,420.60

red units = 15,420.60 x 5/11 = 7,009.36 ≈ 7,010 units

total sales = 7,010 x $20 = $140,200

white units = 15,420.60 x 4/11 = 5,607.49 ≈ 5,608 units

total sales = 5,608 x $35 = $196,280

blue units = 15,420.60 x 2/11 = 2,803.75 ≈ 2,804 units

total sales = 2,804 x $65 = $182,260

total sales = $518,740

c. Management should start using the new material as soon as possible since it doesn't only decrease the break even point, if sales level remain the same, it will increase operating profits.

Explanation:

red's contribution margin = $8

white's contribution margin = $13

blue's contribution margin = $12

sales mix = 5:4:2

weighted contribution margin = ($8 x 5/11) + ($13 x 4/11) + ($12 x 2/11) = $3.6363 + $4.2727 + $2.1818 = $10.0908

new contribution margin:

red's contribution margin = $14

white's contribution margin = $25

blue's contribution margin = $22

sales mix = 5:4:2

weighted contribution margin = ($14 x 5/11) + ($25 x 4/11) + ($22 x 2/11) = $6.3636 + $9.0909 + $4 = $19.4545

4 0

3 years ago

What factors are not important in determining exchange rate fluctuations in the long​ run?

What factors are not important in determining exchange rate fluctuations in the long run?