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Mumz [18]
3 years ago
7

A Lexus automobile priced in Japan for export at 3000000 at a time when the exchange rate is 100 now costs $30000 in the United

States If the dollar weakens to 80 and the rate of pass through is 50 what will be the new price in the United States Disregard shipping costs and import duties
a $45000
b $37500
c $33750
d $30000
e 22500
Business
1 answer:
Bumek [7]3 years ago
5 0

Answer:

  • what will be the new price in the United States

c $33750

Explanation:

Initial Price:

$3,000,000   PRICE  

100           USD Exchange  

$30,000     PRICE USD  

Updated Price:

$3,000,000   PRICE  

80              USD Exchange  

$37,500      PRICE USD  

As the pass through indicates that the exchange rate impact only a 50%, then the final price of the car it's defined as:

$7,500   Exchange Impact

0.50   Pass through  

$3,750   Final Exchange Impact

Initial Price : $30,000

Final Exchange Impact: $3,750

Final Price: $30,000 + $3,750 = $33,750

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Answer:

The Company should Lease the equipment (Alternative 1)

Explanation:

Preparation of a differential analysis on March 23 as to whether Casper Company should lease or sell the equipment.

DIFFERENTIAL ANALYSIS

Lease Equipment (Alternative 1); Sell Equipment (Alternative 2) Differential Effect on Income (Alternative 2)

Revenues $285,200 $273,400 –$11,800

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($273,400*3%=$8,202)

Income (Loss) $270,100 $265,198 $4,902

Therefore Based on the above Differential Analysis the Company should LEASE the equipment (Alternative 1).

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2 years ago
Distribution strategies ​
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Malaysia and Laos are members of the same trading bloc that promotes trade and economic integration among member nations in the
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Answer:

The Association of Southeast Asian Nations (ASEAN)

Explanation:

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Luxguard Home Paint Company produces exterior latex paint, which it sells in one-gallon containers. The company has two processi
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The calculation of this question and working of solutions is in tabular form which is attached to this answer.

What is Cost?

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1 year ago
The demand for money is the relationship between the quantity of money demanded and the​ _____, when all other influences on the
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Answer:

The correct answer is letter "D": nominal interest​ rate; hold.

Explanation:

The demand of money refers to the amount of money people prefer to hold in cash instead of investment vehicles or assets. The demand for money is proportional to individuals' income and the interest rate. According to this approach, when the interest rates are higher, people prefer to invest. When interest rates fall, people prefer to hold cash.

Therefore, <em>the demand for money explains the relationship between the quantity of real money demanded and the nominal interest rate that people prefer to keep, remaining the same all other factors that influence the amount of money.</em>

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