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NEW QUESTION: 1
Scenario:

A. Option C
B. Option B
C. Option D
D. Option A
Answer: B

NEW QUESTION: 2
A company has sales of US $500,000, variable costs of US $300,000 and pretax profit of US $150,000. If the company increased the sales price per unit by 10%, reduced fixed costs by 20%, and left variable cost per unit unchanged, what would be the new breakeven point in sales dollars?
A. U S $110,000
B. U S $125,000
C. US $100,000
D. US $88,000
Answer: D
Explanation:
The breakeven point in sales dollars is equal to the sum of fixed cost plus any desired pretax profit, divided by contribution margin ratio [ sales -variable costs) - sales]. Fixed cost was US $50,000 $500,000 sales $300,000 VC - $150,000 pretax profit). Given the increase in sales of 10% and decrease in fixed costs of 20%. the breakeven point in sales is US $88,000.

A company manufactures and sells a single product It takes two machine hours to produce one unit. Annual sales are expected to be 75.000 units. Annual production capacity is
200.000 machine hours. Expected selling price is US $10 per unit. Cost data for manufacturing and selling the product are as follows:

NEW QUESTION: 3
Which of the following methods of measuring transaction exposure to exchange rate risk uses standard
deviation, coefficient of correlation and other formal statistical techniques?
I. Measurement of currency variability.
II. Measurement of currency correlations.
A. Both I and II.
B. II only.
C. I only.
D. Neither I and II.
Answer: A
Explanation:
Choice "c" is correct. The currency variability approach uses standard deviations as a means of predicting
future exchange rates while the currency correlation approach is often applied to circumstances involving
multiple currencies and evaluates exposure in relation to the statistically computed degree of correlation
between the movements of different currencies. Choices "a", "b", and "d" are incorrect, per above
Explanation: .