Suppose, the cost of production of a widget in Mexico is 5 pesos. Assume that initially the exchange rate between the peso and the dollar is 2 pesos per dollar. Later, the exchange rate changes to 2.5 pesos per dollar. In the initial situation, a widget sold in the U.S. would be priced at ____; after the change in the exchange rate, the widget would be priced at ____.
A. $2.50; $2.00
B. $2.50; $3.12
C. $0.50; $0.40
D. $0.40; $0.50
Answer: A
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In 2016, Valencia Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000 . In its statement of cash flows for 2016, Valencia should report the following with respect to the above transactions:
a. $363,000 cash used by operating activities; $182,000 cash provided by financing activities. b. $181,000 net cash used by investing activities. c. $181,000 net cash used by investing activities; $27,000 net cash provided by operating activities. d. $363,000 net cash used by investing activities.
Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________
A) corporate image marketing B) social marketing C) place marketing D) social engineering E) negative brand equity
Eric Brown is a human resource manager in a company selling and manufacturing personal computers. Who among the following is Eric most likely to hire as a salesperson if his objective is to minimize training costs post recruitment?
A) Samantha, a fresh college graduate B) Richard, a product developer from a competing firm C) Nancy, an experienced engineer with no prior experience in personal selling D) Melissa, a proven salesperson from a competing firm E) Henry, a young salesperson with a few months' experience in a large MNC
Net income for a particular period does not equal cash flow from operations because
a. most firms use the accrual basis of accounting to measure operating performance. b. most firms typically recognize revenue at the time of sale, independent of when they receive the cash from the sale. c. some firms receive cash before providing services and recognizing revenues. d. some firms receive cash after they have provided goods and recognized revenues. e. all of the above