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AleksAgata [21]
3 years ago
10

The nominal interest rate in Fiji is 3%, while the nominal interest rate in the U.S. is 5%. Real interest rates in both countrie

s are 2%. According to purchasing power parity (PPP), the Fijian dollar (F$) may be expected to ________ by ________%.
Business
1 answer:
Aloiza [94]3 years ago
8 0

Answer:

1.98%

Explanation:

The computation is shown below:-

As we know that

PPP equation i.e

Nominal Interest rate = Real interest rate + Inflation rate

Now

The Inflation rate for Fiji is

= 5% - 2%

= 3%

And, the Inflation rate for US is

= 3% - 2%

= 1%

As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:

= (1 + 3%) ÷ (1 + 1%) -1

= 1.98%

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Assume that a company cannot determine the market value of equipment acquired by reference to a similar purchase for cash. Expla
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Solution :

Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :

-- the market price of the bonds when they have an established price in the market.

-- the market price of the bonds when the common stocks does not have a established market price.

-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.

8 0
3 years ago
a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects
lidiya [134]

If the publisher actually sells 1300 textbooks:

  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

  • A. the publisher will lose money on the sale of the textbooks.
  • B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
  • D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

#SPJ4

3 0
1 year ago
Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Proces
lesya692 [45]

Answer:

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory            10,000

Units Started                                                 <u>  = 40,000</u>

Units to account for                                           <u>50,000</u>

<em><u>In the Work In Process for Conversion Costs</u></em>

Beginning Work In Process (10,000*20 %)   = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started                                                   = 40,000

Add Ending Inventory (8000*40%)                 <u> 3200</u>

Units to account for =                                     <u>51,200</u>

5 0
3 years ago
Sheridan Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai
il63 [147K]

Answer:

Closing inventory - $10,160

Costs of goods sold - $9,600

Explanation:

Under the LIFO Method, the cost of good sold equals to

= April 23 units × cost per unit + Remaining units × cost per unit

= 300 units × $22 + 150 units × $20

= $6,600 + $3,000

= $9,600

Since the firm has sold 450 units, so out of which 300 units sold at a price of $22 and the remaining 150 units sold at a price of $20

The ending inventory equals to

= Remaining units × cost per unit + April 1 × cost per unit

= 270 units × $20 + 280 units × $17

= $5,400 + $4,760

= $10,160

Since on April 23, the 420 units were purchase, out of which 150 units are transferred to the cost of good sold and the remaining units 270 units at $20 is transferred to the ending inventory

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2 years ago
To construct the consumer price index, the bureau of labor statistics must:
Afina-wow [57]
Find out what people buy and then proceed to survey how the prices of those items change 
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3 years ago
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