On March 1 . Suki Corporation entered into a firm commitment to purchase specialized equipment from the Sashimi Trading Company for ¥80,000,000 on June 1 . The exchange rate on March 1 is ¥100 = $1 . To reduce the exchange rate risk that could increase the cost of the equipment in U.S. dollars, Suki pays $20,000 for a call option contract. This contract gives Suki the option to purchase
¥80,000,000 at an exchange rate of ¥100 = $1 on June 1 . On June 1 . the exchange rate is ¥105 = $1 . How much did Suki save by purchasing the call option (answers rounded to the nearest dollar)?
a. $20,000
b. $27,619
c. $47,619
d. Suki would have been better off not to have purchased the call option.
D
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Digital trade involves exchange of all EXCEPT
a. goods. b. services. c. information. d. equipment.
Which of the following statements is true of the Financial Services Authority (FSA) of the United Kingdom?
A) It is a governmental body whose board of directors is appointed by the president. B) It oversees transactions and demands ethical and legal conduct from firms. C) It utilizes government funding that must be approved by the British Parliament. D) It has to coordinate with other governmental bodies to regulate trading exchanges.
Which of the following remedies is NOT available for patent infringement?
a. Attorneys' fees in some but not all cases. b. An accounting for profits. c. Treble damages when appropriate. d. Injunctive relief.
South Bay Manufacturing began business on January 1
During its first year of operation, South Bay worked on five industrial jobs and reported the following information at year-end: Job 1 Job 2 Job 3 Job 4 Job 5 Direct Materials 1,000 8,500 4,000 3,500 1,500 Direct Labor 12,000 20,100 13,000 12,000 800 Allocated Mfg. Overhead 1,700 6,600 2,500 7,500 200 Job completed: Jun 30 Sep 1 Oct 15 Nov 1 Not completed Job sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: 39,000 39,000 N/A N/A N/A South Bay's allocation of overhead costs left a debit balance of $1,400 in the Manufacturing Overhead account, which was adjusted to zero at year-end. What was the amount of gross profit earned during the year? A) $26,700 B) $2,400 C) $28,100 D) $22,900