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Lemur [1.5K]
3 years ago
15

A can of soda costs $0.75 in the United States and 12 pesos in Mexico.

Business
1 answer:
allsm [11]3 years ago
7 0

Answer:

a) 16 pesos per dollar

b) 32 pesos per dollar

Explanation:

If purchase-power parity holds, the exchange rate should guarantee that the can of sold would cost the same dollar amount both in the United States and in Mexico. The exchange rate is:

R=\frac{12/ pesos}{\$0.75}\\R=\frac{16/ pesos}{\$}

If the price of the soda doubles and the parity remains, the exchange rate also double:

R'= 2*R\\R'=\frac{32/ pesos}{\$}

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ABC Company received $9,631 for its 5-year, 10% bonds with a total face value of $10,000. The market rate of interest was 11%. T
Anastaziya [24]

Answer:

The correct answer is Option A.

Explanation:

The effective interest rate (EIR) method is used when a bond is purchased at a discount or premium.

In the case of the question, the bond was purchased at $9,631 with a face value of $10,000. Interest expense is calculated as the bond price multiplied by the market rate, i.e. $9,631  x 11% = $1,059.41.

Therefore, ABC Company would record $1,059 on the first annual interest payment date using the effective-interest method.

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3 years ago
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Choice is the largest employer in the Pacific Northwest. It is covered by numerous federal employment laws. As such, it is requi
hichkok12 [17]

Answer:

C) twelve weeks of unpaid family or medical leave during any twelve-month period.

Explanation:

The Family and Medical Leave Act of 1993 provides employees with temporary medical leave when:

  1. their child is born (or they adopt a child) and they must take care of him/her
  2. if their spouse (husband or wife), child under 18, or parent has a serious health condition
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5 0
3 years ago
Yehle Inc. regularly uses material Y51B and currently has in stock 457 liters of the material for which it paid $2,619 several w
Sedaia [141]

Answer:

Option A is the correct answer,$5810

Explanation:

The relevant of the Y51B is the cost of replacement,which is the open market price as it is actively being used by Yehle Inc.

Besides, if the quantity currently in inventory is used it has to be replaced at open market price.

Disposal value would have been used if the material in question is not being used

The relevant of 700 liters is given below:

$5.81*1000=$5,810

1000 liters has to be bought not 700 liters as the least quantity available for sale is 1000 liters.

Above,it would be wrong to choose option D as 700 liters is not available

5 0
3 years ago
As of December 31, 2015, Juneau Company had total cash of $155,000, notes payable of $85,600, and common stock of $52,400. Durin
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Answer:

ending RE 30,000

Explanation:

Using the acounting equation we solve for the beginning RE

<em>Assets = liab + equity</em>

155,000 = 85,600 + 52,400 + Retained Earnings

155,000 - 85,600 - 52,400 = <em>17,000</em>

beginning RE 17,000

net income

revenues 36,000 - 20,000 expenses = 16,000

dividends: 3,000

ending RE: 17,000 + 16,000 - 3,000 = 30,000

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3 years ago
What are the three types of economic resources? Give an example of each type of resource.
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"The three types of economic resources are also referred to as factors of production. Land (including all natural resources), Labor (including all human resources), Capital (including all man-made resources), and when you combine all of those you get production. "


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