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klasskru [66]
3 years ago
7

Eileen, a manager at an international restaurant chain, wants to know if it will be most cost effective to buy 1,000 pounds of s

ugar in Country X or in Country Y using U.S. dollars. Which of the following isEileen most likely trying to determine?
A) purchasing power parity
B) economic growth rate
C) gross domestic income
D) gross national product
Business
1 answer:
liberstina [14]3 years ago
3 0

Answer:

The correct answer is letter "A": Purchasing Power Parity.

Explanation:

Purchasing Power Parity or PPP compares currencies of different countries through the approach of a market basket of goods. Two currencies are in PPP when, in both countries, a market basket of goods, taking into account the exchange rate, is priced the same. PPP currency rates are considered more reliable than the exchange rates on the market.

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On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:
GREYUIT [131]

Based on the information given the appropriate journal entries to record the exchange for both Robers and Phifer are:

Robers entries

Debit Equipment (new) $77,000  

Debit Accumulated Depreciation $111 000  

Debit Cash $19,000  

Credit Equipment  $190,000

Credit Gain on Sale $17,000

($77,000+$111,000+$19,000-$190,000)

Phifer's entries

Debit Equipment(new) $96,000  

Debit Accumulated depreciation $119,000  

Debit Loss on Sale $14,000

($210,000+$19,000-$96,000-$119,000)

Credit Equipment  $210,000

Credit Cash  $19,000

Learn more about journal entries here:brainly.com/question/24696035

4 0
2 years ago
Smith Wholesale budgeted sales price is $40 per unit for an budgeted sales volume of 5,000 units. The actual performance was 5,5
alex41 [277]

Answer:

$20,000 Favorable

Explanation:

As for the provided information, we have:

Sales Volume Variance is defined as the variance arising due to difference in sales quantity based on standard price.

Formula for the above = (Actual Sales - Budgeted Sales) \times Standard Price

= (5,500 - 5,000) \times $40

= $20,000

This variance shall be categorized as favorable, as the actual sales quantity is more than the static budgeted quantity.

Therefore, Sales Volume Variance = $20,000 Favorable

8 0
2 years ago
You are selling an autographed Steve Nash rookie basketball card online for $170. A potential buyer contacts you and offers to p
Ierofanga [76]

Answer:

Option (C) is correct.

Explanation:

Selling price of a basketball = $170

A potential buyer contacts you and offers to pay you$170 Canadian dollars.

Exchange rate between the U.S and Canada is as follows:

$1 U.S = $1.25 Canadian

So,

Worth of $170 U.S in terms of Canadian dollar is as follows:

= $1.25 × $170

= $212.5 Canadian dollars

If you take this deal, you will have returned Steve to his homeland and Earned less than if you accept $170 U.S.

Because, the worth of $170 U.S dollars is $212.5 Canadian dollars. Hence, there is a loss of $42.5 Canadian dollars if he will accept the deal.

So, it is better for him to accept $170 U.S dollars.

8 0
3 years ago
Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2021, are presented below:
Elza [17]

Answer:

A.) 33,000

Explanation:

The computation of the gross profit is as follows;

But before that following calculations need to be done

Percentage of completion = Cost incurred in 2020 ÷ Total cost

where,

Total cost = Cost incurred + estimated cost

= $180,000 + $200,000

= $380,000

Now

Percentage of completion is

= $180,000 ÷ $380,000

= 47.368%

Now  

Revenue to be recognized in year 2020 is

= contract revenue × percentage of completion

= $450,000 × 47.368%

= $213,156

So,

Gross profit = Revenue - Cost

= $213,156 - $180,000

= $33,156

= $33,000

8 0
2 years ago
Manufacturing has an expected EBIT of $40,000 per year in perpetuity and a tax rate of 35%. The firm currently has no debt. Its
morpeh [17]

Answer and Explanation:

The computation is shown below:

Given that

EBIT = $40,000

Unlevered cost of capital = 14%

Cost of debt = 8%

tax rate = 35%

based on the above information,

(i)

(a) Current firm value is

Value of a perpetuity = FCFF ÷ Cost of capital

where,

cost of capital= cost of equity

 = $40,000 ÷ 14%

= $285,714

b. And, the equity value would be $285,714 as the present debt is zero

8 0
2 years ago
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