Hudson Valley Distributors wants to be sure it has 10,000 cases of Beaujolais Nouveau to sell next November. In January, they enters into an agreement to buy the wine at a price of 34.62 euros per case
Payment will be due at the end of November. They expect to sell the wine to restaurants and retailers for $63 per case. If Hudson Valley does not hedge its position and the exchange rate in November is $1.30 /euro, what is the gross profit on the wine? (Round to the nearest dollar.)
A) $179,940
B) ($179,940)
C) $363,692
D) $283,800
Answer: A
You might also like to view...
According to the text, a(n) ________ test can be a useful tool for determining if a career in sales is appropriate for you.
A. physical strength B. cognitive abilities C. job aptitude D. manual dexterity E. IQ
Increased earnings
a. are reflected as an increase in cash flow. b. do not always generate an increase in cash flow. c. result in a decrease in cash flow only if dividends are paid. d. are the starting point for the direct method cash flow statement. e. include none of the above.
Which of the following acts protects persons from harassment by federal administrative agencies?
A) the Freedom of Information Act B) the Government in the Sunshine Act C) the Equal Access to Justice Act D) the Privacy Act
Which of the following is true of cellphone communication??
A) ?It ensures complete confidentiality and is not prone to misuse. B) ?It improves performance among salespersons by improving their outreach to clients. C) ?It is free from policies and legal restrictions. D) ?It is cost-effective when communicating with people located in several time zones.