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mamaluj [8]
4 years ago
11

1. Suppose the Kenyan shilling (KS) is currently traded at KS 1.4/$.The Ethiopian Birr (EB) is traded at E B1.39/$.Ignoring tran

saction costs: A. Determine the KS/EB exchange rate consistent with these direct quotations
Business
1 answer:
otez555 [7]4 years ago
4 0

Answer:

The answer is <u>KS 1.01/EB</u>.

Explanation:

This is an example of a cross rate.

Cross rate refers to an exchange rate between two currencies that is calculated based on the exchange rate of each of the two currencies to a third currency.

For this question, the cross rate KS/EB will be estimated by reference the US dollar which is third currency. This can be calculated by simply dividing the KS 1.4/$ by the E B1.39/$ as follows:

KS/EB = 1.4 / 1.39 = 1.01

That is, the answer is <u>KS 1.01/EB</u>.

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Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about
alina1380 [7]

Answer:

Annual demand (D) = 1,600 units

Ordering cost per order (Co) = $16

Holding cost per item per annum (H) = $8

EOQ = √2Dco

                H

EOQ = √2 x 1,600 x $16

                    $8

EOQ = 80 units

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

5 0
3 years ago
Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable                                      $2,000,000

      To common stock                          $1,000,000

      To Discount on common stock     $30,000

      To Paid in capital                            $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable            

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0
3 years ago
The production department is proposing the purchase of an automatic insertion machine. It has identified 3 machines and has aske
cricket20 [7]

Answer: the correct answer is a. Machine B

Explanation:

Machine A average rate return

40000 out of 300000. It means that 300000 is 100% and $ 40000 is X. We apply a simple three rule:

40000       X                     X= 4000000/300000

300000     100%               X= 13.33%

Machine B average rate return

50000 out of 250000. It means that 250000 is 100% and $ 50000 is X. We apply a simple three rule:

50000       X                     X= 5000000/250000

250000     100%               X= 20%

Machine C average rate return

$75,000 out of $500,000. It means that $500,000 is 1005 and $75,000 is X. We apply a simple three rule

$75,000     X                       X=7500000/500000

$500,000  100%                 X= 15%

The highest average is the one onf Machine B

4 0
4 years ago
________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in
Sunny_sXe [5.5K]

Answer:

The correct answer is letter "D": Value proposition.

Explanation:

A Value Proposition is a guarantee of a special and relevant advantage from producers to consumers. The purpose of the value proposition of the business is to convey a reason for the consumer to buy from the business and to direct the company in making decisions that are consistent with this promise.

A concise value proposition will identify <em>who the main customers are, what the problems of the customers are, what unique benefit the products of the company provide, </em>and <em>why this benefit is better for the customers than the advantages of the competitors.</em>

3 0
3 years ago
When you purchase an item in a store, you may be charged___?
Hoochie [10]
C. Sales Tax We are actually learning the same thing I just looked at my paper and it was correct. Hope this helps.

8 0
4 years ago
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