Answer:
the exchange rate between U.S. dollar and German mark be under this system will be of 3 U$D = 1 german mark
Explanation:
We will use gold and silver as a mean to equalize both currencies:
<u>First equivalence between silver and gold:</u>
90 francs = 1 ounce of gold
9 franc = 1 ounce of silver
90/9 = 10 ounce of silver equals 1 ounce of gold.
<u>Now, we convert the german mark to gold:</u>
1 german mark = ounce of silver
10 german mark = ounce of gold.
<u>Finally, we equalize with the US dollars:</u>
30 dollar = ounce of gold = 10 german mark
30 dollars = 10 german mark
3 dollars = 1 german mark
They traded with other farmers
Answer:
(A) $ 2,602.34
(B) $ 4,156.97
(C) $ 8,233.47
(D) $ 46,796.64
Explanation:
We need to solve for the PMT of an ordinary annuity:
(A)
FV 24,850
time 8
rate 0.05
C $ 2,602.337
(B)
FV 1,030,000
time: 43
rate 0.07
C $ 4,156.972
(C)
FV 856,000
time 29
rate 0.08
C $ 8,233.466
(D)
FV 856,000
time 14
rate 0.04
C $ 46,796.641
Answer:
since the special order does not affect current normal sales, its analysis should only consider incremental expenses, not regular expenses:
A) Income statement without the special order
total revenue = $68 x 80,100 = $5,446,800
- COGS = ($2,446,880)
- Direct materials $897,120
- Direct labor $608,760
- Overhead $941,000
gross profit = $2,999,920
- SG&A = ($1,022,000)
- Selling exp. $559,000
- Administrative exp. $463,000
net income = $1,977,920
B) incremental revenue from special order = 14,900 x $63 = $938,700
incremental costs:
- direct materials = ($897,120 / 80,100 units) x 17,900 = $200,480
- direct labor = ($608,760 / 80,100 units) x 17,900 = $136,040
- overhead = ($658,700 / 80,100 units) x 17,900 = $147,200
- selling expenses = [($335,400 / 80,100 units) x 17,900] + ($2.70 x 17,900) = $74,952 + $48,330 = $123,282
- administrative expenses = $940
- total incremental costs = $607,942
incremental gain from special order = $938,700 - $607,942 = $330,758
Income statement with the special order
total revenue = $6,385,500
- COGS = ($2,930,600)
- Direct materials $1,097,600
- Direct labor $744,800
- Overhead $1,088,200
gross profit = $3,454,900
- SG&A = ($1,146,222)
- Selling exp. $682,282
- Administrative exp. $463,940
net income = $2,308,678