Answer:
Explanation:
Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)
rh - periodic interest rate in the home currency
rf - periodic interest rate in the foreign currency
Forward/90 = [1+1%*180/360]/[1+2%*180/360]
Forward = 1.005/1.01 * 90 = 89.55
Forward rate is 89.55 yen/$
Answer:
A
Explanation:
Breakeven quantity is the number of units produced and sold at which net income is zero
The product should not be released because the demand is less than breakeven quantity. If the product is released, the firm would earn losses
Answer:
Total variable cost if 4 units were produced
= $33.75 x 4 units = $135
Total fixed cost = Total cost - Total variable cost
Total fixed cost = $175 -$135
Total fixed cost = $40
Average fixed cost = Total fixed cost/No of units
Average fixed cost = $40/10 units
Average fixed cost = $4
The correct answer is B
Explanation:
In this case, we need to calculate the total variable cost on the ground that 4 units were produced. Then, we will determine the total fixed cost by deducting the total variable cost from total cost. Finally, we will divide the total fixed cost by 10 units in order to obtain the average fixed cost.
Answer:
25%
Explanation:
the margin of safety is the percent of sales which the company is above the break even point.
We solve for the break even point:
BEP = 150,000
We solve for the margin of safety:
$ 200,000 - $ 150,000 = $ 50,000
Now we compare against our sales:
$ 50,000 / $ 200,000 = 0.25
Answer:
Variable overhead efficiency variance= $100,000 unfavorable
Explanation:
Giving the following information:
200,000 machine‐hours are budgeted for variable overhead at a standard rate of $5/machine‐hour, but 220,000 machine‐hours were used.
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (200,000 - 220,000)*5
Variable overhead efficiency variance= $100,000 unfavorable
