Answer:
b. one Dollar can buy 0.738 Euros
Explanation:
Given that
The Current Exchange rate is
= $1.335 ÷ 0.738 Euro
The 0.738 represents the indirect exchange rate now transform it into direct exchange rate
Direct Exchange rate is
= $1 ÷ 0.738 Euro
= $1.3550
Now bid price for purchase one euro is $1.335 and ask price to purchase one euro is $1.355
But the person could purchased at ask price only
Therefore the option b is correct
Answer:
The effect of this transaction is a gain of $2,500 on disposal.
Explanation:
Cost of motor = $15000
Accumulated depreciation = $12000
Net book or carrying value = 15000 - 12000
= $3,000
Income from disposal = $5,500
Gain/(loss) on disposal = $5,500 - $3,000
= $2,500
The effect of this transaction is a gain of $2,500 on disposal.
Answer:
Unitary Direct material cost= $0.16 per bar
Explanation:
Giving the following information:
The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400 lbs. $1.25 per lb.
Sugar 80 lbs. $0.40 per lb.
Milk 120 gal. $2.50 per gal.
Unitary Direct material cost= (400/5,200)*1.25 + (80/5,200)*0.40 + (120/5,200)*2.5= $0.16 per bar
Answer:
7,500 units
Explanation:
The break-even point is the point in which the earnings and the costs are the same and there is no gain or loss. The formula to calculate the break-even point in units is:
Break-even point in units= Fixed Costs/(Sales price per unit – Variable costs per unit)
Now you have to replace the values given to find units that have to be produced to break even:
Break-even point in units=30,000/(10-6)
Break-even point in units=30,000/4
Break-even point in units=7,500
The answer is that the units that have to be produced to break even are 7,500.
