Answer: Please refer to Explanation
Explanation:
The magazine The Economist publishes an article indicating that analysts expect the value of Canadian dollars to rise relative to Ethiopian birr.
-The Ethiopian Birr will DEPRECIATE in relation to the Canadian Dollar because the article will lead to a rise in demand for Canadian dollars and a drop in Demand for the Birr.
The central bank in Ethiopia announces that it is going to raise interest rates on government bonds.
-Ethiopian Birr will APPRECIATE relative to the CAD as the demand for the Birr will increase due to the attractiveness of it's bonds.
Based on a World Bank report, the inflation rate in Ethiopia is going to be 0% next year, while the inflation rate in Canada is going to be 10%.
- The Birr will APPRECIATE relative to the CAD because goods will be more expensive in Canada. This causes the demand for the Birr to rise as it is the preferred currency.
The price of a specific basket of goods in Ethiopia is roughly 1.9 times higher than an identical basket of goods in Canada, even after adjusting for the exchange rate.
- The Birr will DEPRECIATE relative to the CAD as a higher basket price indicates that the price is higher in Ethiopia than in Canada which will reduce the demand for the Birr increase that of the CAD.
Answer:
D
Explanation:
The action being used here is the psychological pricing action.
It tends to appeal to the buying reasoning of the buyer. In this system of pricing, the prices of goods are intentionally placed using odd figures. This is because, it is believed that setting prices at these type of price ranges have a psychological effect on the consumer
The 0.01 cent difference would appeal to the psychological thinking of the consumer, thereby making him purchase the goods which in fact is same price when looked at technically
All in all, the pricing system is looking to make the buyer take a decision which will favor the seller as the fractional bits taken off the price would appear to the customer as if he’s purchasing at a lesser price which is technically not so
Monitor, because soft copy is seen on the screen
Answer:
a. $149.00
b. $217.00
Explanation:
Variable Costing
Product Cost under Variable Costing = Variable Manufacturing Costs Only
Total Variable Manufacturing Cost = $610,900
Unit Cost = Total Cost / Units Manufactured
= $610,900 / 4,100 units
= $149.00
Variable Costing
Product Cost under Absorption Costing = Variable Manufacturing Costs + Fixed Manufacturing Costs.
<u>Total Absorption Cost Calculation</u>
Total Variable Manufacturing Cost $610,900
Fixed manufacturing costs $278,800
Total Absorption Cost $889,700
Unit Cost = Total Cost / Units Manufactured
= $889,700 / 4,100 units
= $217.00
