1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
WINSTONCH [101]
3 years ago
13

Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product

in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 0.6 €/$. Dec 31, 2018: 1.2 €/$. Feb 1, 2019: 1.5 €/$. What was profit or loss from these transactions (in 2018 and 2019 combined)?
Business
1 answer:
Andrej [43]3 years ago
8 0

Answer:

Combine profit of 2018 and 2019 is $200 + (-$100 loss) = $100 profit.

Explanation:

The value of imported product from Germany as on 1st Dec. 2018 = 300 Euro

The exchange rate as on 1st Dec. 2018 = 0.6 Euro/Dollars

The value of imported product in dollars =\frac{300}{0.6} = 500 dollars.

Since product sold in cash for $400 as on 15th Dec.

Since fiscal year end on 31st Dec. So, find the profit and loss.

Profit and loss = Sold price - Product price in dollars

Profit and loss = $400 - $500

Thus, loss for the year 2018 = $100

Now the dealer will pay  on 1st Feb 2019 and on this date the exchange rate is 1.5 Euro/Dollars. The dealer have to pay the 300 Euro. So,on 1st Feb the value of 300 Euro in dollars will be: = \frac{300}{1.5} = $200.

Now, dealer will pay only $200 which is equal to 300 Euro. However, dealer had received $400 from sale. So. Profit is $400  - $200 = $200.

Thus, the loss of 2018 is $100 and profit of 2019 is $200.

Combine profit of 2018 and 2019 is $200 + (-$100 loss) = $100 profit.

You might be interested in
A tax preparer is part of
USPshnik [31]
C would be the answer
8 0
3 years ago
Read 2 more answers
etermine the degree of operating leverage for each approach at current sales levels. (Round answers to 2 decimal places, e.g. 2.
viktelen [127]

Answer: $1,376,000.

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this question effectively;

(1). The current approach and automated approach for Contribution Margin Ratio is 25 % and 50 % respectively.

(2). The current approach and automated approach for Break-even point in Sales Dollar is $ 1,248,000 and $ 1,312,000 respectively.

(3). The current approach and automated approach for Degree of Operating Leverage is 4.18 and 5 respectively.

(4). The current and automated approach for Decline in net income for a 10 % decline in sales is 41.8 % and 50 %.

(5). The current and automated approach for level of Sales where net income will be same under both options is $ 1,376,000 and $ 1,376,000 Respectively.

(6). The current approach and automated approach for Margin of Safety Ratio is 24% and 20% respectively.

Note that;

(1). BP = TFC / CMR

Where BP= Break-even point in sales dollar, TFC = Total Fixed Cost and CMR= Contribution Margin Ratio.

(2). MSR = ( ASD - BSD) / ASD × 100.

Where MSR= Margin of Safety Ratio,ASD=Actual Sales dollars, BSD= Break-even Sales dollars , and ASD = Actual Sales dollars.

(3). CMR = CM ÷ Sales × 100.

CMR = Contribution margin ratio, CM =Contribution Margin.

(4). DOL = CM ÷ NI.

Where DOL = Degree of Operating Leverage, CM = Contribution Margin and NI = Net Income.

Decline in net income for a 10 % decline in sales = OL x 10.

Where OL => Operating Leverage.

We then say that V = level of sales.

=> V x 25 % - 312,000 = V x 50 % - 656,000.

=> 0.25 V = 344,000.

V = $ 1,376,000.

4 0
3 years ago
The following information was available for Pete Company at December 31, 2013:
Leno4ka [110]

Answer:

8.2

Explanation:

See attached picture.

5 0
3 years ago
Drinking alcohol and driving is dangerous because it
solong [7]

Answer:impairs driving ability

Explanation:

Enhances driving ability is wrong because it impairs vision and you brain does not process as fast.

is responsible is also wrong because you have a higher chance of getting hurt of hurting someone else.

heighten  the senses is also wrong because alcohol lessens senses not heightens senses.

5 0
3 years ago
Read 2 more answers
2. An increase in demand is an increase in consumer willingness to
kiruha [24]

Answer:

An increase in demand is an increase in consumer willingness to. purchase moe of the good at any price.

Explanation:

4 0
3 years ago
Other questions:
  • Credit card A has an APR of 12.5% and an annual fee of $48, while credit card B has an APR of 15.4% and no annual fee. All else
    5·1 answer
  • What is the key feature in basic automobile insurance ?
    11·1 answer
  • . Mortgage Affordability. Seth and Alexandra Moore of Elk Grove Village, Illinois, have an annual income of $110,000 and want to
    11·1 answer
  • Marcus is on a team to plan volunteer opportunities for employees in the company. His role is to handle public communications ab
    15·1 answer
  • MangiareBuono, a supermarket chain, has asked Fiorello to supply it with 30,000 gallons of Top Quality Oil at a price of $8 per
    15·1 answer
  • You are choosing among three apartments. Apartment 1 costs $700 per month, and lets you walk to work. Apartment 2 costs $600 per
    8·1 answer
  • A organization in which specialists from different parts of the organization are brought together to work on specific projects b
    6·1 answer
  • The following four employees all feel committed to the organization they work for. Jennifer feels it will be difficult to find a
    11·1 answer
  • When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and
    9·1 answer
  • all of the following would be considered manufacturing overhead costs by a book publisher except a. wages paid to the production
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!