One of the main advantages of e-marketing is

Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchas

gladu [14]

Answer:

a. The effect on reported income in 2020 is a foreign exchange gain of $6,400.

b-1. The effecton reported income in 2020 is a foreign exchange loss of -$12,800.

b-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

c-1. The effect on reported income in 2020 is a foreign exchange loss of -$6,400.

c-1. The effect on reported income in 2021 is a foreign exchange gain of $9,600.

Explanation:

a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December 1, 2020. What is the effect of the exchange rate fluctuations on reported income in 2020?

Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is higher than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.23) = $6,400

b. Assume that Spindler acquired the surfboards on December 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and 2021?

b-1. Since the U.S. Dollar per Brazilian Real on 1-Dec-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-De-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.23 - $0.25) = -$12,800

b-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

c. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on March 1, 2021. What is the effect of the exchange rate fluctuations on reported income in 2020 and in 2021?

c-1. Since the U.S. Dollar per Brazilian Real on 1-Sep-20 is lower than the U.S. Dollar per Brazilian Real on 31-Dec-20, the effect of the exchange rate fluctuations on reported income in 2020 is a foreign exchange loss calculated as follows:

Foreign exchange loss on 31-Dec-20 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Sep-20 - U.S. Dollar per Brazilian Real on 31-Dec-20) = BRL640,000.00 * ($0.24 - $0.25) = -$6,400

c-2. Since the U.S. Dollar per Brazilian Real on 31-Dec-20 is higher than the U.S. Dollar per Brazilian Real on 1-Mar-21, the effect of the exchange rate fluctuations on reported income in 2021 is a foreign exchange gain calculated as follows:

Foreign exchange gain on 31-Mar-21 = Value of surfboards in Brazilian real * (U.S. Dollar per Brazilian Real on 1-Dec-20 - U.S. Dollar per Brazilian Real on 1-Mar-21) = BRL640,000.00 * ($0.25 - $0.235) = $9,600

6 0

3 years ago

6. Consider an economy described by the following equations:

kiruha [24]

Answer:

(a) Private saving = Y-T-C

Private saving = 5000-1000-250-0.75(5000-1000)

Private saving = 750

Public saving = T - G

Public saving = 1000-1000

Public saving = 0

National saving = S = private saving+ public saving

National saving = 750

(B) Equilibrium interest rate = S + I

750 = 1000 - 50r

-50r = 750 - 1000

-50r = -250

50r = 250

r = 250/50

r = 5%

(c) Private saving is unchanged

Public saving = 1000 - 1250

Public saving = - 250

(d) The new equilibrium interest rate

750 (-250) = 1000-50r

500 = 1000 - 50r

- 50r = 500 - 1000

- 50r = -500

-50r = 500

r = 500/50

r = 10%

7 0

3 years ago

Uber is a tech company that connects its mobile phone app users who have a trip request with nearby Uber drivers who use their o

Liula [17]

Answer:

1. The price for Uber services increases.

2. The quantity of Uber services sold increases.

Explanation:

As the college students use the uber so here the number of students are rised up that means the demand is more when the semester is started i.e. the price is more

Also the uber has one attribute i.e. surge pricing which represent the law of demand and the supply. In the case when the demand is more or the supply is less the price would increase

So overall the price and the quantity should increased

6 0

2 years ago

When actual revenue ______ what the revenue should have been, the variance is labeled favorable.

xeze [42]

When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.

Hope that helps!

6 0

1 year ago

Read 2 more answers

You are the manager of a movie theater that is the only one in a local market, so you have strong market power. You have extensi

Gre4nikov [31]

Answer: b. Set higher prices to the students as their demand is relatively more inelastic.

Explanation:

Price elasticity of demand measures the change in quantity demanded to changes in price levels.

If demand is inelastic, a small change in price has a small effect on quantity demanded. An inelastic demand usually has a coefficient of less than 1.

The elasticity of demand for students and senior citizens are both inelastic but that of the students is greater than that of senior citizens. They are less responsive to price changes when compared with senior citizens.

7 0

2 years ago

One of the main advantages of e-marketing is _