Over the next 14 years, inflation is expected to be 5 percent per year in Ectenia and 10 percent per year in Wiknam. If this inflation comes to pass, what will happen over this period to the price of Spam and the exchange rate?

Answers

Answer 1
Answer:

Answer:

1.8pesos

2.Price of Spam in Ecteria as well as in Wiknam will increase

Explanation:

8 Pesos per dollar=16/2=8pesos

Ans for 2)

Price of Spam in Ecteria as well as in Wiknam will increase


Related Questions

Resources are distributed unevenly throughout the world. This fact MOST relates to the reasons for A.profit seeking.B.free enterprise. C.international trade.D.business competition.
6. In the case of an investment in equity securities where the investor does not have significant influence and the investment is carried at fair value, a dividend from the investee is: a. A reduction of the carrying amount of the investment. b. Income to the investor in the period of declaration. c. An expense to the investor in the period of declaration. d. A direct increase to retained earnings of the investor to offset the direct decrease to retained earnings of the investee.
Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at a price of $260 per unit. Labor costs are estimated at $32 per unit and overhead costs would be $24 per unit. The major uncertainty is the price of the synthetic material. Mira Mesa is in negotiations with several suppliers for the material. Because of the risk associated with the new product, Mira Mesa will only proceed if the estimated return is at least 30 percent of the selling price.Required:What is the most Mira Mesa can pay for the synthetic material per unit (refrigerator) and meet its profitability goal?
An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day—at 9:00 AM, 11:00 AM, 1:00 PM, and again at 3:00 PM—office productivity has declined 30 percent since she assumed the helm one year ago. Would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? Explain.
Tidy Limited purchased a new van on January 1, 2018. The van cost $40,000. It has an estimated life of ten years and the estimated residual value is $3,500. Tidy uses the double-declining-balance method to compute depreciation. What is the adjusted balance in the Accumulated Depreciation account at the end of 2019

A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,000 per month for the next three years and then $1,000 per month for two years after that. If the bank is charging customers 9.75 percent APR, how much would it be willing to lend the business owner

Answers

Answer:

$78,443.29

Explanation:

we need to use the present value of an annuity formula:

the formula used to determine the present value factor of an annuity is:

present value annuity factor = [1 - 1/(1 + i)ⁿ ] / i

we must divide this into 2 parts:

the first part will deal with the $2,000 monthly payment

the second part deals with the $1,000 monthly payment

i = 9.75% / 12 = 0.8125%

n (first part) = 36

n (second part) = 24

the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)³⁶ ] / 0.8125% = 31.1043

the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)²⁴ ] / 0.8125% = 21.7251

loan = ($2,000 x 31.1043) + ($1,000 x 21.7251)//(1 + 0.8125%)³⁶ = $62,208.60 + $16,234.69 = $78,443.29

= [1 - 1/(1 + 0.0069942)240 ] / 0.0069942 = 116.135183    

Final answer:

The bank would calculate the present value of the loan payments to determine how much to lend the small business owner.

Explanation:

The bank would be willing to lend the business owner an amount that corresponds to the present value of the loan payments. To calculate the present value, we need to discount each of the future cash flows to the present time using the bank's annual percentage rate (APR). The formula to calculate the present value of an annuity is:

Present Value = A x [(1 - (1 + r) ^ -n) / r]

Where A is the monthly payment, r is the monthly interest rate, and n is the number of months.

Using this formula, we can calculate the present value of the loan payments and determine how much the bank would be willing to lend the business owner.

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At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers. Required:
Write down the journal entry.

Answers

Answer and Explanation:

The journal entry is shown below:

Cash $1,050  

Cash short and over $9  

      Sales revenue  $1,059

(Being the cash collection is recorded)

Here we debited the cash as it increased the assets and credited the sales revenue as it also increased the revenue and the difference is debited to cash short and over

JB Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?

Answers

Answer:

$984,061.12

Explanation:

The computation of sales revenue under the worst-case scenario is shown below:-

Sales revenue under the worst-case scenario = Quantity sold × Price

= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)

= (1,600 - 48) × ($647 - 12.94)

= 1,552 × 634.06

= $984,061.12

Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.

Dillard’s, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter report, the company reported Cost of Goods Sold of $880 million, ending inventory for the third quarter of $1,900 million, and ending inventory for the previous quarter of $1,500 million. Estimate merchandise purchases for the third quarter.

Answers

Answer:

$1,280 million

Explanation:

The change between the opening inventory balance and the ending inventory balance for a period is as a result of the purchases of inventory and the sale of inventory during the period.

All of these elements are related as;

Opening inventory + purchases - cost of goods sold = ending inventory

As such, to estimate the merchandise inventory purchased,

let the purchase for the period be T

1500 + T - 880 = 1900 (All amounts in millions of $)

T = 1900 + 880 - 1500

= 1280

The merchandise purchases for the third quarter is $1,280 million.

Ernest invents a novel, useful, nonobvious product. He:____.a. must apply for a patent within one year of selling the product commercially.
b. may receive patent protection for two years by filing a simpler, shorter, cheaper provisional patent application while he is working on his complex, regular patent application.
c. is entitled to a patent over someone else who invents the same product if he is the first to invent it.
d. may sell his product for up to five years to see how well it sells before going through the complex process of filing a patent application with the PTO Office.

Answers

Answer:

a. must apply for a patent within one year of selling the product commercially.

Explanation:

As the product is the novel and also useful at the same time so he himself wants to try for the commercial purpose for reaping the benefits and the same should be used for a patent within one year for selling the product commercially manner

So as per the given situation, the option a is correct

And, the rest of the options seems incorrect

6. A system anticipates that spending $300,000 on an advertising campaign will increase bed days by 650. The marketing department anticipates that each additional bed day will yield $2,100 in additional revenue and will increase costs by $1,700. The campaign a. will reduce profits by $40,000. b. will increase profits by $40,000. c. will increase profits by $90,000. d. will increase profits by $210,000

Answers

Answer:

a. will reduce profits by $40,000

Explanation:

A: TR - TC = 650 * 2,100 - [$300,000 + (650 * 1,700)]1,365,000 - 1,405,000 = $ - 40,000

Therefore, this campaign will reduce profits by $40,000

Final answer:

The advertising campaign would reduce profits by $40,000. This is calculated by subtracting the campaign cost and additional costs per bed day from the total revenue generated from bed days.

Explanation:

The subject of this question is the financial impact of a proposed advertising campaign on a system's profits. To determine the effect on profits, we need to calculate the difference between the anticipated additional revenue and the anticipated increased costs, and then subtract the cost of the advertising campaign.

In this scenario, the total additional revenue from 650 bed days, at $2,100 each, would be $2,100 x 650 = $1,365,000. The total additional costs from these bed days would be $1,700 x 650 = $1,105,000. Subtracting costs from revenue, we have $1,365,000 - $1,105,000 = $260,000. Finally, we subtract the cost of the campaign, $260,000 - $300,000 = -$40,000. So, the advertising campaign would reduce profits by $40,000. Therefore, the correct choice is (a).

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