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3 years ago

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Assume Mexico can produce 18 tons of coffee or 6 tons of rice and Costa Rica 6 tons of coffee ord 3 tons of rice. According to c

omparative advantage. Costra Rica therefore should produce a. only coffee b. both coffee and rice c. neither coffee or rice. d. only rice

1 answer:

shusha [124]3 years ago

7 0

Answer:

d. only rice

Explanation:

Please see attachment

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During the first year of operations, 18,000 units were manufactured and 13,500 units were sold. On August 31, Olympic Inc. prepa

kvasek [131]

Answer:

a. The unit cost of goods manufactured based on the variable costing concept.

=Total variable cost of goods manufactured / Total units Manufactured

= (288,000) /18,000= $ 16

b. The unit cost of goods manufactured based on the absorption costing concept.

=Variable cost of goods manufactured +Fixed manufacturing costs / Total units Manufactured=$288,000+ $12,000/18,000= $ 16.67

Explanation:

a. The unit cost of goods manufactured based on the variable costing concept.

=Total variable cost of goods manufactured / Total units Manufactured

= (288,000) /18,000= $ 16

b. The unit cost of goods manufactured based on the absorption costing concept.

=Variable cost of goods manufactured +Fixed manufacturing costs / Total units Manufactured=$288,000+ $12,000/18,000= $ 16.67

Working

Olympic Inc.

Variable Costing Income Statement

For Year Ended August 31

Sales $297,000

Variable cost of goods sold:

Variable cost of goods manufactured $288,000

Ending inventory (72,000)

Total variable cost of goods sold (216,000)

Manufacturing margin $81,000

Variable selling and administrative expenses (40,500)

Contribution margin $40,500

Fixed costs:

Fixed manufacturing costs $12,000

Fixed selling and administrative expenses 10,800

Total fixed costs (22,800)

Operating income $17,700

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2 years ago

An oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B. The FED in coun

Ann [662]

When an oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B.

The FED in country A takes immediate action increasing the money supply, while FED in inflationary country B does not take any action

In this case, in long term "Both countries return to their long-term stable equilibrium, but country A will remain with a higher price level than country B".

<h3>What is Federal Reserve System (FED)?</h3>

The nation's central banking system is the Federal Reserve System, usually referred to as the Federal Reserve or just the Fed.

The Fed offers a secure, adaptable, and stable monetary and financial system to the nation.

The Fed's primary responsibilities include-

overseeing and regulating banks,
implementing national monetary policy,
preserving financial stability, and
offering banking services.

Therefore, to better understand the effects of financial services laws and practices on customers and communities, the Federal Reserve promotes supervision, community reinvestment, and research.

To know more about monetary policy, here

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1 year ago

Select the examples that best demonstrate likely tasks for Science and Math workers.

Kazeer [188]

A, B, and C would best demonstrate the tasks.

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2 years ago

You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla

kotykmax [81]

Answer: An astute trader can make $ 41,666.66.

Explanation: You must first change

$ 1,000,000 per pounds, which would leave a total of £ 500,000. ($ 1,000,000 / 2.00 = £ 500,000;).

Secondly spend £ 500,000 to euros, obtaining € 600,000 (£ 500,000 x 1.20 = € 600,000;).

Thirdly, with euros, buying dollars again, obtaining $ 960,000 (€ 600,000 x 1.60 = $ 960,000), that is, an arbitrage loss of -40,000 in relation to the initial investment.

Finally you must return in the opposite direction:

$ 1,000,000 / 1.6 (€) / 1.2 (£) * 2 - $ 1,000,000 = $ 41,666.66 that is, an arbitrage profit.

4 0

3 years ago

A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.

iVinArrow [24]

Answer:

(a) 9.9%

(b) 10.09%

The further explanation is given below.

Explanation:

The given values are:

Coupon payment

= $99

Price

= $1,000

(a)

The Yield to maturity (YTM) will be:

= $\frac{C+\frac{F-P}{n} }{\frac{F+P}{2} }$

where,

C = Coupon payment

P = Price

n = years to maturity

F = Face value

On putting the estimated values is the above formula, we get

⇒ $99+\frac{0}{1000}$

⇒ $.099$

⇒ $9.9$ %

(b)

Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.

= $[99\times (1 + r)] + 1,099$

Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:

Rate (r) Total proceeds Realized YTM ( $(\frac{proceeds}{1000} )^{.5} - 1$ )

7.9% 1205.8 9.8%

9.9% 1207.8 9.9%

11.9% 1209.8 9.99%

Now,

Overall proceeds realized YTM:

= $\frac{proceeds}{1000} -18 \ percent \ 1,\frac{2081208}{1000} - 1$

= $0.0991$

= $9.91 \ percent \ 10 \ percent \ 1,\frac{2101210}{1000}- 1$

= $0.1000$

= $10.00 \ percent \ 12 \ percent \ 1,\frac{2121212}{1000}-1$

= $0.1009$

= $10.09$ %

6 0

3 years ago