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rewona [7]
3 years ago
15

Dorothy bakes various items and supplies them to different patisseries. Friendly Neighborhood Baker has placed an order for 50 c

upcakes and 50 brownies daily from Dorothy. A month after entering into the contract, the bakery is demanding that Dorothy increase the supply to 500 for each item for its other outlets. In such a case:
Business
1 answer:
pochemuha3 years ago
3 0

Answer and Explanation:

From the following given case or scenario , we can state that in this particular case, <em>"Dorothy will stick to the contract and thus has to supply in accordance to the agreement or the actual contract. </em>" Even though the Friendly Neighborhood Baker is demanding of Dorothy to increase the supply to 500 for the cupcakes and brownies but still the supply would still remain in accordance to the agreement signed.

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Answer:

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b. Overvalued

Explanation:

a. What should the pound-mark exchange rate be in 2012?

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Or,

Ratio of Atlantica mark to Pacifica pound in 2012 = 280/360 = 0.78

Therefore, according to the relative purchasing power parity (PPP) theory, one Pacifica pound should equal to 1.29 Atlantica mark, i.e. 1 Pound/1.29 Mark.

This can also be stated differently that 1  Atlantica mark should equal to 0.78 Pacifica pound, i.e. 0.78 Pound/Mark.

b. If the actual pound per mark exchange rate is 0.5 pound/mark in 2012, is the mark overvalued or undervalued relative to its PPP value

Since the PPP pound per mark exchange rate value estimated in a above is 0.78 Pound/ Mark is higher than the actual pound per mark exchange rate of 0.5 pound/mark in 2012, mark is therefore overvalued.

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Answer:

If the special offer earns a positive contribution margin, we should accept the special order.

Explanation:

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Management should accept the special offer.

When the company receives offer, the hotel is running at low season. occupancy rate is 55%

If the special offer earns a positive contribution margin, we should accept the special order.

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3 years ago
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Answer:

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