Explanation:
for the time in history,there are 5 Generations working side-by-side the transitional generation .
The value of the holdings of Megahurtz International Car Rentals at year end is CA$176,923.08
The value of the holdings if the real went up against the dollar is $266, 667. 67.
<h3>How to find the value of the holdings?</h3>
The exchange rate before the real declined was:
= 270,000 / 200, 000
= 1.35 real per dollar
The new exchange rate after the Real declined was:
= 1.35 x 1.3
= 1.755 Real per dollar
The value of the holdings at year end in Real will therefore be:
= 270, 000 x 1.15
= 310, 500 Real
In Canadian dollar this is:
= 310, 500 / 1.755
= CA$176,923.08
The new exchange rate as a result of the Real increasing in value is:
= 1.35 x (1 - 16% increase in value)
= 1.134 Real per dollar
The value of the holdings at year end would therefore be:
= 270,000 x (1 + 12% earning)
= 302, 400 Reals
In Canadian Dollar this is:
= 302, 400 / 1.134
= CA$266, 666. 67
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Answer: (a) CM ratio = 40, break even point in balls = 21,000 balls (b ) degree of operating leverage = 3
Explanation:
(a) To calculate the CM ratio , we use the formula
Selling price - variable expenses / selling price
Selling price = $25, variable expenses = $15
= (25 - 15 )/ 25
= 10 / 25
= 0.4 × 100
= 40
To calculate the break -even points in balls, we use the formula
Break even point = fixed cost / contribution per unit
Fixed cost = $210,000, Contribution per unit = (25 -15) = 10
210,000 / 10
= 21,000 balls
(b) To calculate the degree of operating leverage last year, we use the formula
Contribution margin / net income
Contribution margin =$300,000, net income = 90,000
= 300,000 / 90,000
= 3.33
= 3
Answer:
The correct answer is letter "A": Neither Italy or New Zealand.
Explanation:
Comparative advantage is the ability of an individual or organization to manufacture its products at a lower opportunity cost than its competitors. The scenario does not imply the individual has an absolute advantage. It actually means it sacrifices less to achieve that goal.
Thus, <em>Portugal has a lower opportunity cost than Italy in producing a bottle of wine. Portugal's opportunity cost is 1/2 while Italy's opportunity cost is 2. Neither Italy or New Zealand (or any other country not mentioned in the example) has a comparative advantage in producing wine</em>.