An apparel manufacturing plant has estimated the variable cost to be $4.20 per unit. Fixed costs are $1,300,000 per year. Forty percent of its business is with one preferred customer and the customer is charged at cost. The remaining 60% of the business is with several different customers who are charged $20 per unit. If 200,000 total units are sold in a year, compute the unit cost per item.

Answers

Answer 1

Answer:

$10.7

Explanation:

Variable cost ($4.2 × 200,000)

$840,000

Fixed cost

$1,300,000

Total cost

= Fixed cost + variable cost

= $1,300,000 + $840,000

= $2,140,000

Therefore,

Unit cost per item

= Total cost / Total units sold

= $2,140,000 / 200,000

= $10.7


Related Questions

A portfolio consists of three stocks. There are 540 shares of Stock A valued at $24.20 share, 310 shares of Stock B valued at $48.10 a share, and 200 shares of Stock C priced at $26.50 a share. Stocks A, B, and C are expected to return 8.3 percent, 16.4 percent, and 11.7 percent, respectively. What is the expected return on this portfolio

Answers

Answer: 12.47%

Explanation:

The value of each stock will be gotten by their unit multiplied by the price.

Value of Stock A = 540 × 24 2 = 13068

Value of stock B = 310 × 48.1 = 14911

Value of stock C = 200 × 26.5 = 5300

Total value of stock = 33279

Weight of stock A = 13068 / 33279 = 0.393

Weight of stock B = 14911 / 33279 = 0.448

Weight of stock C = 5300 / 33279 = 0.159

The expected return on this portfolio will then be:

= (0.393 × 8.3) + (0.448 × 16.4) + (0.159 × 11.7)

= 12.47%

Which of the following statements are true?

a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.

Answers

Answer:

b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening. TRUE

higher liabilities respect to current assets, decrease the company's ability to meet its short term payments

c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. TRUE

the current ratio = current assets / current liabilities

the quick ratio = (current assets - inventory) / current liabilities

the difference between both shows the dependence on selling inventory to pay off debts.

e. An increase in the current ratio over time always means that the company’s liquidity position is improving. TRUE

discuss the negative impact of the socio-economic issues identified in QUESTION 1.5lack of skill on business.​

Answers

Answer:

A lack of skill in business may have many negative socio-economic impacts, both at the societal level, and at the individual level.

Explanation:

At the societal level, this lack of business skills may produce a society in which entrepreneurship is low, which causes the private sector have poor dynamic, and economic growth to be sluggish. This can create an array of  negative socio-economic issues from unemployment, to poverty, to income inequality.

At the individual level, lack of business skills represents a handicap for individuals who would like to become business owners, but are thus unable to do so effectively. Their business may fail very quickly, leaving individuals in debt, or they may simply not start businesses at all, and be employees all their lives.

Your employer contributes $75 a week to your retirement plan. Assume that you work for your employer for another 20 years and that the applicable discount rate is 7.5 percent. Given these assumptions, what is this employee benefit worth to you today

Answers

Answer:

This employee benefit is worth $40,384.69 today.

Explanation:

a) Data and Calculations:

Employer contributions per week = $75

Period of work for the employer = 20 years (20 * 52 = 1,040)

Applicable discount rate is 7.5%

PV = $40,384.69

Sum of all periodic contributions = $78,000.00 ($75*20*52)

Total Interest = $37,615.31

b) The worth of the employee benefit equals the present value of all the contributions by the employer and the accompanying interest, compounded weekly at 7.5% per annum for a period of 20 years.

A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is

Answers

Answer:

the value of the marginal product of labor is $500

Explanation:

The computation of the value of the marginal product of labor is shown below:

= MRP × price per unit

= 10 units × $50 per unit

= $500

hence, the value of the marginal product of labor is $500

We simply applied the above formula

1-When would high Do you think making employees happier at work is a good way of motivating people? When would high satisfaction not be related to high performance?
2-In your opinion, what are the three most important factors that make people dissatisfied with their job? What are the three most important factors relating to organizational commitment? satisfaction not be related to high performance

Answers

Answer:

DAYTON, Ohio -- For decades, employees and employers alike have followed the motto that job satisfaction determines job performance. Not so, according to a new study by Wright State University.

Nathan Bowling, an assistant professor who specializes in industrial and organizational psychology, said three decades of data derived from thousands of employees in a cross-section of jobs -- blue collar and white collar -- prove that although job satisfaction and job performance do correlate, one does not cause the other.

Even researchers, Bowling said, get confused about how the two things connect.

Read More

"On days when ice cream sales are high, the number of crimes committed will also tend to be high, but this doesn't mean that ice cream sales cause crime," he said. "Rather, ice cream sales and crime are related because each is the result of the outdoor temperature. Similarly, satisfaction and performance are related because each is the result of employee personality."

By personality, Bowling pointed to such characteristics as self-esteem, emotional stability, extroversion and conscientiousness.

Studies, Bowling said, show that employees who have an overall negative attitude to all things in life likely won't find job satisfaction, regardless of performance, because of their personality characteristics.

"Emotional stability matters a lot," he said. "People who are neurotic, those who tend to be anxious, depressed ... typically won't find satisfaction no matter how many jobs they try."

The same goes for those with low self-esteem, he added. Studies show that employees with high self-esteem tend to be more satisfied with their jobs than those who do not have that level of confidence.

"Simply put, workplace interventions designed to improve performance by exclusively targeting employee satisfaction are unlikely to be effective," Bowling said.

So how can you have both?

"There are ways to select employees who will be successful," Bowling said. "Studies show that intelligence is one of the things that drives the performance."

He said solid performing employees also exhibit a high level of conscientiousness -- those who are detail-oriented and hard workers and who set goals.

Yilan Company is considering adding a new product. The cost accountant has provided the following data.
Expected variable cost of manufacturing $ 50 per unit
Expected annual fixed manufacturing costs $ 92,000
The administrative vice president has provided the following estimates.
Expected sales commission $ 4 per unit
Expected annual fixed administrative costs $ 48,000
The manager has decided that any new product must at least break even in the first year.
Required:
Use the equation method and consider each requirement separately.
a. If the sales price is set at $74, how many units must Yilan sell to break even?
b. Yilan estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even?
c. Yilan has decided to advertise the product heavily and has set the sales price at $78. If sales are 8,000 units, how much can the company spend on advertising and still break even?

Answers

Answer:

Following are the responses to the given choices:

Explanation:

In point a:

[tex]\text{Break even point} ( in \ units ) =\frac{Fixed\ cost}{contribution}[/tex]

                                           [tex]=\frac{140000}{20}\\\\=7000 \ units[/tex]

In point b:

[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]

[tex]=\$ 54 +\$ 14 \\\\= \$ 68[/tex]

[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]

                                                     [tex]=\$54 +\$ 14\\\\=\$ 68[/tex]

Claim of work

Fixed unit costs For sale It is 4,000 units likely  

[tex]\text{Units Fixed costs} = \frac{Total \ Fixed- cost}{Units \ Fixed-costs}[/tex]

                            [tex]= \frac{\$140,000}{10,000}\\\\=\$14[/tex]  

In point C:

Sales([tex]8,000 \ units \times 78[/tex]) [tex]\$624,000[/tex]

Less : Cost of Variable ([tex]8000\times 54[/tex])[tex]\$432000[/tex]

Contribution [tex]\$192,000[/tex]

Less: Fixed cost [tex]\$140,000[/tex]

advertising balance   [tex]\$52,000[/tex]

They realize there's no benefit and thus no loss at breakeven pomt.  

A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43

Answers

Answer and Explanation:

The computation is shown below:

In the case when the stock price is $102.32

So, the net profit is

= $102.32 - $100 - $5.05

= -$2.73

In the case when the stock price is $97.62 is

= $97.62 - $100 - $5.05

= -$7.43

Hence, the same would be considered and relevant too

Marigold Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $620000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $630000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15

Answers

Answer:

$31,000

Explanation:

Overhead rate = $620000 / 20000 = $31.00

Applied overheads = 1000 x $31.00 = $31,000

manufacturing overhead should be applied to Job A15 are $31,000

Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of jobs is 8 milliseconds (0.008 second) with a coefficient of variation of 1.5. On average, there are 20 jobs waiting in the queue to be served and 60 jobs in process (i.e., being processed by a server rather than waiting to be sent to a server for processing).

Required:
How many servers do they have in this system?

Answers

Answer:

Huduko Inc.

The number of servers in this system is:

= 200.

Explanation:

a) Data and Calculations:

Utilization rate = 30%

Interarrival time of jobs = 8 milliseconds (0.008)

Coefficient of variation = 1.5

Average jobs waiting in the queue to be served = 20

Number of jobs in process = 60

Number of servers processing the 60 jobs = 60

Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).

Information for two companies in the same industry, Skysong Corporation and Sheridan Corporation, is presented here. Skysong Corporation Sheridan Corporation Cash provided by operating activities $166,000 $166,000 Net earnings 240,000 240,000 Capital expenditures 71,000 97,000 Dividends paid 6,800 27,000 Compute the free cash flow for each company. Skysong Corporation Sheridan Corporation Free cash flow

Answers

Answer:

See below

Explanation:

Fee cash flow computation for SKYsong corporation.

Free cash flow

Net earnings

$240,000

Cash provided by operating activities

($166,000)

Capital expenditures

($71,000)

Dividends

($6,800)

Cash flow balance

($3,000)

Free cash flow computation for Sheridan Corporation

Free cash flow

Net earnings

$240,000

Cash provided by operating activities

($166,000)

Capital expenditures

($97,000)

Dividends

($27,000)

Cash flow balance

($50,000)

Simon lost $5,700 gambling this year on a trip to Las Vegas. In addition, he paid $2,220 to his broker for managing his $222,000 portfolio and $1,505 to his accountant for preparing his tax return. In addition, Simon incurred $3,480 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).

Answers

Answer:

12,885

Explanation:

5700 lost of gambling

2,220 to his broker

1,505 for his accountant

3,480 for his transportation costs

which quote best represents a person performing a cost-benefit analysis​

Answers

I need help on that too

Otto is planning for his son's college education to begin ten years from today. He estimates the end-of-the-year tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Otto deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years of college

Answers

Answer:

$30,373.49

Explanation:

The amount to be deposited today can be determined by finding the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $10,000

I = 12%

PV = $30,373.49

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Rebecca does not want to work in a hospital so there are no jobs that would fit her
in the Health Sciences Cluster

-True
-False

Answers

Answer:

False

Explanation:

Answer: The answer is False

Explanation: I took the test and it was right

Hope this helps :)

ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation

Answers

Answer: Decrease assets and decrease stockholders' equity

Explanation:

If ABC estimates the uncollectible accounts based on the percentage of accounts receivable, the effect that the recording of the estimate of the uncollectible accounts will have on the accounting equation is that there will be a decrease in assets and there'll also be a decrease in the stockholders' equity.

We should note that the accounts uncollectible simply refers to the loans, receivables or other forms of debt that there's no chance of it being paid. Therefore, when they are estimated based on the percentage of accounts receivable, there'll be a reduction in both the assets and the stockholders equity.

Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, th company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of
a. direct investment
b. value engineering
c. franchising
d. sole sourcing

Answers

Answer:

C. Franchising

Explanation:

Franchising can be defined as a way of distributing goods and services that involves a franchisee starting a business by using someone else's 8deas and their expertise legally. To be a franchisee you have to buy this right by paying an initial fee

In this question tru shine is the franchisor because this other company wants to sell their products and services using tru shines name.

1. This year, GHJ Inc. received the following dividends: BP Inc. (a taxable California corporation in which GHJ holds a 2% stock interest) $6,000 MN Inc. (a taxable Florida corporation in which GHJ holds a 52% stock interest) 7,000 AB Inc. (a taxable Canadian corporation in which GHJ holds a 21% stock interest) 10,000 $23,000 a) Compute GHJ Inc.’s dividend-received deduction

Answers

Answer:

Total dividends-received deduction = $17,550

Explanation:

These can be computed as follows:

Dividend-received deduction on BP dividend = Dividend received from BP * 50% = $6000 * 50% = $3,000

Dividend-received deduction on MN dividend = Dividend received from MN * 65% = 7,000 * 65% = $4,550

Dividend-received deduction on AB dividend = Dividend received from AB * 65% = 10,000 * 100% = $10,000

Total dividends-received deduction = Dividend-received deduction on BP dividend + Dividend-received deduction on MN dividend + Dividend-received deduction on AB dividend = $3,000 + $4,550 + $10,000 = $17,550

Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? $fill in the blank 1 b. What account is credited by Barans Company to record the return?

Answers

Answer: See explanation

Explanation:

a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?

The amount of cash required for the payment will be:

Purchases: = $12,900

Less: Returns = $2500

Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104

Cash required for payment = $10296

b. What account is credited by Barans Company to record the return?

Based on the information above, the merchandise inventory will be credited.

The Krisp Kracker company which makes unique kettle chips for restaurants, clubs, and events, has just lost a large client that made up 55% of its total revenue. Management finds it necessary to reduce staff or wages. This comes only three months after hiring 35 new people to support this big client. While there are rumors of wage reductions in the short run, the 100 employees who have been with the company for the past two years are grumbling that they are more valuable that the new hires which should be let go and the wages not reduced. The situation at Krisp Kracker illustrates which wage stickiness theory best

Answers

Answer:

The Krisp Kracker Company

The situation at Krisp Kracker illustrates the Insider-Outsider Wage Stickiness theory best.

Explanation:

This theory suggests that the 100 employees are the insiders while the 35 newly employed are outsiders.  Therefore, at negotiations between the employer and the employees, the 100 employees would also like to negotiate employment terms to the exclusion of the outsiders because they feel that they enjoy a juicier and more privileged position.

On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000

Answers

Answer:

c. $4159672

Explanation:

Computation to determine the amount that Swifty will realize from the sale

First step is to calculate the annual interest payment

Annual interest payment=$5,100,000 × .07

Annual interest payment=$357,000

Now let calculate the amount that Swifty will realize from the sale

Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)

Sales realized amount=$2,193,622+ $1,966,050

Sales realized amount =$4,159,672

Therefore the amount that Swifty will realize from the sale will be $4,159,672

Identify some of the gains that labor unions have made in the United States. What gain do you think is the most important? Why? 15 points

Answers

Answer:

Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)

Explanation:

hope this helps :)

Answer:

he is correct it is...

Explanation:

"Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)"

A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:

Answers

Answer:

$8,850;$7,150

Explanation:

Calculation for Departmental delivery expenses for Dept. Y

Using this formula

Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage

Let plug in the formula

Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%

Departmental delivery expenses Dept. Y= $1,700 + $7,150

Departmental delivery expenses Dept. Y= $8,850

Calculation for Departmental delivery expenses for Dept. Z,

Using this formula

Departmental delivery expenses for Dept. Z= Indirect expense × given percentage

Departmental delivery expenses for Dept. Z= $14,300 × 50%

Departmental delivery expenses for Dept. Z= $7,150

Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150

Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $54,400 and 32,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $2,736 in direct materials and $1,664 in direct labor. The labor rate is $5.20 per hour. By the end of the year, Snappy had worked a total of 37,000 direct labor-hours and had incurred $64,650 actual manufacturing overhead cost. If Job #334 contained 120 units, the unit product cost on the completed job cost sheet would be:

Answers

Answer:

Unitary cost= $41.2

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (54,400/32,000)

Predetermined manufacturing overhead rate= $1.7 per direct labor hour

Now, we can allocate overhead based on actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Direct labor hours= 1,664 / 5.2= 320

Allocated MOH= 1.7*320= $544

Finally, the total cost and unitary cost:

Total cost= 544 + 1,664 + 2,736

Total cost= $4,944

Unitary cost= 4,944 / 120

Unitary cost= $41.2

A soup kitchen falls under what type of organization?

National School Lunch Program
Nutrition Program for the Elderly
Expanded Food and Nutrition Education Program
Food Bank

Answers

food bank because they used a soup kitchen during the Great depression and it's for the homeless people too it has to be program

a term used when the products are sold directly to their end consumers or user without third-party retailers wholesalers or other middle men​

Answers

Direct selling. Or exporting. I’m not too sure

What is the Best loan option for your
lemonade Stand? Why?

Answers

Answer:

Short term loan

Explanation:

Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".

Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.

Green, Inc., provides group term life insurance for all of its employees. The coverage equals twice the employee's annual salary. Sam, a vice president, worked all year for Green, Inc., and received $200,000 of coverage for the year at a cost to Green of $1,500. The Uniform Premiums (based on Sam's age) are $0.25 per month for $1,000 of protection. How much must Sam include in gross income this year

Answers

Same is broke so she needs $10,000 to pay her taxes

Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas will ________. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will_________ . The temporary unemployment resulting from such sectoral shifts in the economy is best described as ____________ unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?

a. Establishing government-run employment agencies to connect unemployed workers to job vacancies
b. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
c. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program

Answers

Answer:

increase

decrease

frictional unemployment

a, b

Explanation:

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

As a result of the increase in price of cotton, the profit of making cotton would increase. So the production of cotton would increase and more labour would be needed

the cost of production for cotton producing firms would increase and this would discourage production. The demand for labour would increase

the government can reduce frictional unemployment by having policies that reduce the job search period and would incentivise labour to get employed quickly

Consider relative purchasing power parity (PPP) and remember the consumer price index (CPI) provides the price level in a country at any point in time. Assume CPI in the US is 165 in 2010 and 200 in 2015, and CPI in Canada is 170 in 2010 and 220 in 2015 (with base year as 2000). If the spot exchange rate was 0.7640 USD/CAD in 2010, what is it in 2015 if relative PPP holds

Answers

Answer:

0.7156 USD/CAD

Explanation:

Relationship between relative PPP and inflation rates can be expressed as given below:

S(1)/S(0) = (1+I(y)) / (1+I(x))................(1)

==> S(0) = spot exchange rate at the beginning of the time period

==> S(1)  = spot exchange rate at the end of the time period

==> I(y) = expected inflation rate for country y, which is foreign country

==> I(x) = expected inflation rate for country x, which is domestic country.

Here, assumes that the US is a foreign country and Canada is domestic country

I(y) = (200/165) - 1 = 21.21%

I(x) = (220/170) - 1 = 29.41%

On putting the values of I(x) and I(y) in the first equation, we get:

S(1)/0.764 = (1+0.2121) / (1+0.2941)

S(1)/0.764 = 0.9366354996

S(1) = 0.764*0.936635

S(1) = 0.7156 USD/CAD

If relative PPP holds, the spot exchange rate in 2015 will be 0.7156 USD/CAD

Other Questions
can someone help me out ? i'm new to it HELP ME please i am have a bit trouble Which of the following shows the correct way to connect 2 ideas with a coordinating conjunction A. I don't believe that horseshoes are lucky; but I never go anywhere without my lucky rabbits foot B. I don't believe that horseshoes are lucky, but I never go anywhere without my lucky rabbits foot C. I don't believe that horseshoes are lucky, but, I never go anywhere without my lucky rabbits foot D. I don't believe that horseshoes are lucky. But I never go anywhere without my lucky rabbits foot 5. mirar -- to look at:Juan y yoa la gent3i6. llegar -- to arrive:Ta las cinco.7. extraar -- to yearn for:Yola juventud. l A room that is kept at the same temperature year-round feels warm to someone who comes in from outside during the winter and cool to someone who comes in from outside during the summer. Explain how this can be true. Can someone pls help me i need Help ASAP Compare the life cycles of a flowering and a conifer non-flowering plant. Please help me it is functions and relation number. What river has the greatest elevation change of any river onearth? write 95.491 as a mixed number 22.(06.06 MC)Read the dialogue and the question. Then, choose the correct option to complete the dialogue.Pedro: Hola! La semana prxima tengo una clase sobre biodiversidad en mi ciudad.Marta: iHola! Es bueno te preparar. Necesitas ayuda?Pedro: S. conmigo, por favor?Marta: S. Leeremos y visitaremos la biblioteca maana.Based on the dialogue, what will Pedro most likely ask? (2 points)Ayudars comerO Buscars librosTomars aguaViajars a una selva grande23. (06.07 LC) PLEASE PLEEASE HELP I PROMISE I WILL GIVE BRAINLIIEST!!!! A stone has a mass of 112.5g. When the stone is totally immersed in a measuring cylinder containing water the displaced water moves from 50cm3 to 95cm^3. Find the density of the stone. The United States should enter a European war only if it was absolutely essential to the futurewelfare of America.True Or False Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions.Choose one of the animals listed on the page, and write a brief description of its characteristics. Be sure to discuss any ways the animal has adapted to its environment. (Site 1)Please don't answer 'I don't know.'. Try and answer this one! Newton's second law states that force is equal to mass times weightmass times accelerationweight divided by massweight times acceleration I need help plz and thank you Most plants have different colors in the fall because ________. chlorophyll production slowschlorophyll is the main pigment and absorbs green lightcarotene production slowscarotene is the main pigment and reflects green light A manufacturer orders lots of steel rods from a supplier (each lot consists of thousands of rods). Assume that the mean length of the rods in each lot is 4 meters and standard deviation is 0.04 meter. The quality manager accepts a lot if the mean length of the randomly selected sample of 64 rods from that lot is at least 4.005 meters, otherwise the lot is returned to the supplier. a) What percentage of the lots received by the manufacturer will be returned to the supplier