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3 years ago

What does an exchange rate tell you?

2 answers:

8 0

When you ask me about exchage rate I remember about Arabic coming to Africa for trading goods. So this tells me that the the value of one currence from deferent nations was converted to another. I hope you got it.

Lana71 [14]3 years ago

3 0

Answer:

it tells you what one nations currency is worth in another country

Explanation:

You might be interested in

1.If the manufacturer is considering production quantities of 40,000 units or 80,000 units, assuming 90% of product will be sold

11Alexandr11 [23.1K]

Carrier sells air conditioning units to distributors. Ahead of the upcoming summer, demand probability is 40,000 units (25%), 55,000 units (35%), 70,000 units (25%), and 80,000 units (15%).

Fixed cost of production = $500,000

Variable cost of production per unit = $1,200

unit selling price= $1500

value for unsold products = $900

Answer the following questions:

1. If the manufacturer is considering production quantities of 40,000 units or 80,000 units, assuming 90% of product will be sold and 10% will be salvaged, what is the profit per unit?

Answer:

For 40,000 units

Profit per unit = $287.50

For 80,000 units

Profit per unit = $293.75

Explanation:

Total Profit = (0.9 * Total Unit Produced * Per unit selling price) + (0.1 * Total Unit Produced * Per unit selling price) - ( Fixed cost + (Total unit produce* Variable cost per unit))

Total Profit = (0.9 * 40,000 * 1,500 ) + (0.1 * 40,000 * 1,500) - (500,000 + (40,000 * 1,200))

= 54,000,000 + 6,000,000 - 48,500,000 = $11,500,000

For 40,000 units

Total Profit = $11,500,000

Profit per unit = total profit/no. of units

= 11,500,00 / 40,000 = $287.50

For 80,000 units

Total Profit = (0.9 * 80,000 * 1,500 ) + (0.1 * 80,000 * 1,500) - (500,000 + (80,000 * 1,200))

= 108,000,000 + 12, 000,000 - 96,500,000

= 23,500,000

Total profit = $ 23,500,000

Profit per unit = 23,500,000 / 80,000

= $293.75

5 0

4 years ago

The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40

Fofino [41]

Answer: 9.03%.

Explanation:

Given: The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent.

Debt to equity ratio is .54

i.e. $\dfrac{debt}{equity}=\dfrac{0.54}{1}\ ...(i)$

Adding denominator to numerator on both the sides, we get,

$\dfrac{debt+equity}{equity}=\dfrac{1.54}{1}\\\\\Rightarrow\ \dfrac{equity}{debt+equity}=\dfrac{1}{1.54}$

i.e. Weighted equity = $\dfrac{1}{1.54}\ ....(ii)$

From (i)

$\dfrac{equity}{debt}=\dfrac1{0.54}\$

Adding denominator to numerator on both the sides we get,

$\dfrac{equity+debt}{debt}=\dfrac{1+0.54}{0.54}$

$\dfrac{equity+debt}{debt}=\dfrac{1.54}{0.54}$

Thus, weight of debt= $\dfrac{1.54}{0.54}$

Now,

Weighted average cost of capital=(Weight of equity) × (cost of equity)+(Weight of debt)×(Cost of debt)×(1-tax rate)

$\dfrac{1}{1.54}\times (0.119)+\dfrac{0.54}{1.54}\times(0.062)\times(1-0.40)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.02174(0.60)\\\\=0.07727+0.013044\\\\=0.090314\approx9.03\%$

Hence, the weighted average cost of capital is 9.03%.

3 0

4 years ago

The wrist watch industry in a country is not very competitive. There are limited brands available and the existing firms use the

Usimov [2.4K]

Answer:

<em>B. she is confusing between price elasticity of demand and income elasticity of demand.</em>

Explanation:

Envy miscalcualte the price elasticy whhich from 1,000 to 1,100 was 12% not the 7% forecasted

The increase in income is a different factor. An increase in income will make the people in the country to consume and/or save more

but they will decide on each product market considering the price/elasticity

In this case, it was -0.12

5 0

3 years ago

Kim has just graduated from law school. She had taken an education loan of $45,000, which now needs to be repaid in equal monthl

boyakko [2]

Answer:

Monthly installment is $724.72

Explanation:

Given:

Amount of loan (PV) = $45,000

Time period (nper) = 6 years or 6×12 = 72 months

Since amount need to be repaid in equal monthly installment

Annual interest = 5% or 0.05

Monthly interest (rate) = 0.05 ÷ 12 = 0.0041667

Calculate monthly installment (pmt) using spreadsheet function =pmt(rate,nper,PV)

Monthly installment is $724.72

Pmt is negative as it is a cash outflow.

3 0

3 years ago

Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $22,000 and variable exp

Dmitrij [34]

Answer:

BEP $88,403.85

Explanation:

R10L22,000 - 10,060 = 11,940

X96N 35,000 - 17,000 = 17,700

57,000 29,640

Contribution Mix total contribution / total sales

29,640/57,000 = 0.52

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

45,970/0.52 = $88,403.84

8 0

3 years ago