In the United States, we can buy a pair of shoes for $58. These shoes are identical in every way, shape, and form to a pair of shoes from Japan that be purchased for ¥7,200 including shipping costs

From whom should we order the shoes if we can exchange $1 for ¥120?
A) Buy from the United States, as we save $2.00.
B) Buy from Japan, as we save $2.00.
C) Buy from the United States, as we save $4.00.
D) Buy from Japan, as we save $4.00.


Answer: A
Explanation: A) Cost of Japanese Shoes = = $60.00. Thus, we would be better off ordering from the United States as they are cheaper by $60 - $58 = $2.00.

Business

You might also like to view...

All of the following are types of cyberbait, except:

A) value-based incentives B) financial incentives C) convenience incentives D) educational incentives

Business

How can an organization show users and fans that the organization values the users input?

A) By hiding outdated posts B) By putting the most important information within the first 90 characters of the post C) By creating strong visual content D) By posting new content daily E) By asking questions and responding to fans in a timely fashion

Business

In periods of falling purchase prices and increasing inventory quantities, LIFO results in a _____ than either FIFO or the weighted-average cost-flow assumption

a. higher cost of goods sold; lower reported periodic income; lower current income taxes b. lower cost of goods sold; lower reported periodic income; lower current income taxes c. higher cost of goods sold; higher reported periodic income; lower current income taxes d. higher cost of goods sold; higher reported periodic income; higher current income taxes e. a lower cost of goods sold; higher reported periodic income; higher current income taxes

Business

A few expensive items of personal property may be insured for all risks at replacement cost with the addition of

A) a codicil. B) an umbrella clause. C) a floater. D) an endorsement.

Business