Answer:
The expected spot rate of the Australian dollar in one year = 1.28 AUD per USD
Explanation:
The Current spot rate of Australian dollar against US Dollar
= 
AUD /USD
AUD per USD.
Inflation rate in Australia 
%
Inflation in the US 
%
Percentage change in Australian currency
%
Thus, the spot exchange rate of AUD 1 year from now will be
AUD per USD.
Answer:
the approximate value of the inventory that was destroyed is $4,862,000.
Explanation:
Use the Gross Profit percentage to find the value of the inventory that was destroyed.
Sales $4,140,000
Less Cost of Goods Sold
Opening Inventory $5,900,000
Add Purchases $2,032,000
Add Freight In $242,000
Available $8,174,000
Less Inventory Lost ($4,862,000)
Cost of Sales (3,312,000)
Gross Profit at 20% $828,000
Conclusion :
The Value of inventory that was destroyed is $4,862,000.
Answer:
$10.80
Explanation:
Given that:
A first-period efficient allocation cost = $10
The constant marginal extraction cost MEC for both periods = $2
The social discount rate (r) = 10%
∴
The efficient undiscounted market price for the 2nd period can be determined by using the formula:
Answer: $66.90 per unit
Explanation:
Cost that would be avoided is:
= Direct materials + Direct cost + Variable manufacturing overhead + part of fixed manufacturing overhead
= 20.80 + 26.50 + 6.90 + (36.10 - 31.40)
= $58.90
If the outside supplier commits to 59,000 units a year, the company should not pay more than:
= (Number of units supplied * Avoidable cost + contribution margin on other product (opportunity cost) ) / Number of units supplied
= (59,000 * 58.90 + 472,000) / 59,000
= $66.90 per unit
