Answer:
$6,000 Unfavorable
Explanation:
Actual Quantity = 243,000 lbs
Standard Quantity:
= Actual finished units produced × Direct materials standard quantity per unit
= 40,000 units × 6 lbs
= 240,000 lbs
Standard Price = $2 per lb.
Hence,
Direct materials quantity variance:
= (Actual Quantity - Standard Quantity) × Standard Price
= (243,000 - 240,000) × $2
= $6,000 Unfavorable
The penalty in that case was just around $4 million.
$4 mil/$43 mil = .093 %
A $1000 bond quoted at 98 would be purchased or sold at a discount
Answer:
The correct answer is C
Explanation:
Covered interest arbitrage (CIA), it is an strategy or tool of arbitrage trading, where the investor capitalizes on the rate of interest which is differential among two countries through using the forward contract for eliminate the exposure or cover to exchange the rate risk.
So, because of covered interest arbitrage, the market forces realign the cross exchange rate among two countries grounded on spot exchange rates of two currencies.
