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Shkiper50 [21]
3 years ago
12

ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerla

nd and would like to expand its foreign operations with a new facility in China. If ABC Software holds a currency option to purchase Swiss francs at SF 1.67/$ in 30 days, at the end of which the exchange rate is SF1.70/$, then ABC Software ________.
Business
2 answers:
igomit [66]3 years ago
5 0

Answer:

Would not exercise its currency option

Explanation:

Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.

A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.

tankabanditka [31]3 years ago
4 0

Answer:

will not exercise the purchase option.

Explanation:

ABC Software will not exercise its purchase option because the Swiss franc depreciated against the US dollar. Why would it exercise the option and pay a higher price? Currently with $1 they purchase 1.70 francs, which is 0.03 francs more than the call (purchase) option.

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Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce l
kumpel [21]

Complete Question:

Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce limited quantities of her own clothing designs. After a few months of operation, she decides to apply some of the forecasting techniques she mastered in school. Which of these statements about her forecasts is correct?  

  1. Her forecasts will probably be 100% accurate.
  2. Her demand forecasts for a year from now will probably be more accurate than her demand forecasts for three months from now.
  3. Her demand forecasts for each style of skirt will be less accurate than her demand forecasts for all skirts.
  4. The best way for her to determine the amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.

Answer:

Option 4 is the correct answer

Explanation:

Because the only best way to forecast the amount of fabric required for the is dependent upon the number of customer orders for each type of skirt she receives.

Remember that the forecasting cannot be 100% correct because we human and we cannot tell the future with 100% surety. All we can do is guessing what would happen.

With the help of past data we can better estimate the demand. As their is no past data available we can make a reliable forecast of the skirt sales.

Option 3 is also incorrect because forecasting is dependant upon the reliable source of information which helps in estimating what would happen. Estimating single or combined sales is not a reliable source of information.

6 0
3 years ago
Erica is an administrative assistant for a company with more than three thousand employees. She needs to send insurance document
stellarik [79]

Answer:

Send an e-mail to all employees

Explanation:

6 0
3 years ago
The Acmeville Metropolitan Bus Service currently charges $ 0.67 for an all-day ticket, and has an average of 472 riders a day. T
Otrada [13]

Answer:

The price elasticity of demand is -3.7

Explanation:

Price Elasticity of demand measure the responsiveness of demand against the change in price of the product.

Simple percentage method calculate the price elasticity by taking ratio of percentage change in Demand to percentage change in price of the product.

Percentage change in Demand = ( Revised demand - Initial demand ) / Initial demand  

Percentage change in Demand = ( 182 riders - 472 riders ) / 472 riders = -0.6144 = -61.44%  

Percentage change in Price = ( Revised Price - Initial Price ) / Initial Price  

Percentage change in Price = ( $0.78 - $0.67 ) / $0.67 = 0.1642 = 16.42%

Price Elasticity = Percentage change in Demand / Percentage change in price

Price Elasticity = -61.44% / 16.42% = -3.74 = -3.7

6 0
3 years ago
Which of the following is TRUE? " When a market price allocates resources, everyone who is able to pay the price gets the resour
sladkih [1.3K]

Answer: When a market price allocates resources, everyone who is able to pay the price gets the resource.

Explanation:

The market allocates prices to goods and services based on the scarcity of the said goods and services. This means that regardless of how scarce a good is, you can get it if you are willing to pay the price that it is being offered at.

For instance, if the price of tomatoes suddenly went up from $4 to $12 per pack, it means that tomatoes are now more scarce and not many people can afford it. If you can afford that $12 however, you will be able to get the tomatoes despite how scarce it is.

7 0
3 years ago
Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity i
Andre45 [30]

Answer:

B)factory overhead cost volume variance

Explanation:

From the question, there was an an assumption that the standard fixed overhead rate is based on full capacity, in this case the cost of available but unused productive capacity is indicated by the factory overhead cost volume variance. Factory overhead cost volume variance can be regarded as the difference that exist between the fixed overhead that is associated to those good/ service from the firm on production volume and the budgeted amount that is associated to goods) services that are been produced. fixed overhead costs

could be Factory rent and others.

5 0
3 years ago
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