Answer:
If the price level in China is rising faster than the price level in the US, this means that the Chinese inflation rate is higher.
two different things will happen here:
1) higher inflation means that Chinese products will be more expensive which will increase the demand for American products. An increase in the demand for American products will appreciate the US dollar, but...
2) Inflation all by itself generally would not alter the exchange rate, but high inflation generally leads to high interest rates. Central banks usually increase interest rates to decrease inflation.
Higher interest rates will usually increase the demand of a currency which result in an appreciation of the local currency against foreign currencies. In this case, the Chinese yuan should appreciate against the US dollar.
Generally the appreciation of a currency due to high interest rates will offset the depreciation due to a negative trade balance.
Answer:
3. Threat of flooding the industry with excellent products
Explanation:
Here are Porter's five primary forces:
- Competition between organizations in the same industry.
This create a sense of rivalry that force each organizations to keep improving their products and services.
This is what represented by option 1.
- Potential of new entrants into the industry.
New entrants into the industry will take a portion of market share. This will benefit the customers because it often force competitors to lower the price of their product
This is what represented by option 2
- Power of suppliers.
Suppliers have the ability to connect the producers and the customers. This give them enough leverage to influence the price imposed by the company.
This is what represented by option 4
- threat of substitute products.
Just like new entrants, substituted products could also take away the market share and reduce the profit that can be taken by companies. This is what represented by option 5.
- Power of customers
Customers could create a demand based on their preference. Companies will have to tried their best to fulfill this demand if they wanted to survive.
This is not mentioned in the options above.
Answer: 709
Explanation:
selling price per unit will be:
= $75000/500
= $150
Variable cost per unit:
= $32000/500
= $64
Contribution margin per unit = $150 - $64 = $86
Number of units to be sold will now be:
= ($20000 + $41000) / $86
= $61000/$86
= 709
Answer:
d. $73,778.50
Explanation:
Variable Cost = $11.07 per unit x 5,150 units = $57,010.50
Total Cost = $130,789
Fixed Cost = Total Cost - Variable Cost
Fixed Cost = $130,789 - $57,010.50
Fixed Cost = $73,778.50
Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.
Hence Total Fixed Cost is equal to $73,778.50.
Answer:
1. Was East Hill Home Healthcare Services organized as a sole proprietorship, a partnership, or a corporation?
East Hill Home Healthcare Services should be considered a closed corporation since there is a small number of stockholders and its shares are not traded in an open trade market.
2. During the current year, the records of the company were inadequate. You were asked to prepare the summary of the preceding transactions.
Since there is not enough room here, I used an excel spreadsheet.
4. What amounts do you need? If some amount is missing, look at the attached PDF.
total assets = $870,000
total liabilities = $280,000
total equity = $590,000
current assets = $134,500
current liabilities = $100,000
5. Compute the current ratio for the current year
current ratio = current assets / current liabilities = $134,500 / $100,000 = 1.345
