Pfizer (US company) sells a drug in Canada. Sales: CAD 45.0m Variable Costs: USD 10.0m, Euro...
Pfizer (US company) sells a drug in Canada.
- Sales: CAD 45.0m
- Variable Costs: USD 10.0m, Euro 1.5m and CAD 2.0m
- Current exchange rate: CAD 1.25/USD and USD 1.1/Euro.
- Calculate the gross margin in USD: ______
- Calculate the gross margin in CAD: ______
Homework Answers
rate positively ..
| Given that- | |||||||||
| sales = | CAD | 45 | |||||||
| Variable cost | |||||||||
| USD | 10 | ||||||||
| EURO | 1.5 | ||||||||
| CAD | 2 | ||||||||
| USD to CAD exchange rate = 1/1.25 | 0.80 | ||||||||
| Euro to CAD exchange rate = 1.1*1.25 | 1.3750 | ||||||||
| Ans a) | Calculate the gross margin in USD: ______ | ||||||||
| Local currency | Local currency Amount | Exchange rate | USD AMT | ||||||
| i | sales = | CAD | 45 | 0.80 | 36 | ||||
| Variable cost | |||||||||
| USD | 10 | 1.00 | 10 | ||||||
| EURO | 1.5 | 1.10 | 1.65 | ||||||
| CAD | 2 | 0.80 | 1.60 | ||||||
| ii | Total USD cost = | 13.25 | |||||||
| iii=i-ii | Gross margin in USD = | 22.75 | |||||||
| Ans b) | Calculate the gross margin in CAD….. | ||||||||
| Local currency | Local currency Amount | Exchange rate | USD AMT | ||||||
| i | sales = | CAD | 45 | 1.00 | 45 | ||||
| Variable cost | |||||||||
| USD | 10 | 1.25 | 12.5 | ||||||
| EURO | 1.5 | 1.38 | 2.0625 | ||||||
| CAD | 2 | 1.00 | 2.00 | ||||||
| ii | Total USD cost = | 16.5625 | |||||||
| iii=i-ii | Gross margin in CAD = | 28.4375 | |||||||
Add Answer to:
Pfizer (US company) sells a
drug in Canada.
Sales: CAD 45.0m
Variable Costs: USD 10.0m, Euro...
A Big Mac costs 4.00 Canadian dollars (CAD) in Toronto and 3.00 US dollars (USD) in New York.
A Big Mac costs 4.00 Canadian dollars (CAD) in Toronto and 3.00 US dollars (USD) in New York. What is the predicted exchange rate? Express your answer as the number of CAD per one USD. For example, an answer of 2.00 CAD per 1.00 USD would be entered simply as 2.00.
Kodak, A US company, has sales in Germany in Euro. Please specify which of the following...
Kodak, A US company, has sales in Germany in Euro. Please specify which of the following actions will help it reduce its foreign currency exposure: Kodak shifts production costs from USA to Germany. Kodak shifts production costs from Germany to USA. Kodak buys Euro forward against the USD. Kodak buys USD forward against the Euro. Kodak borrows in Euro. Kodak borrows in USD.
1. The company manufactures products in Z, the variable costs is euro 6 per 1 unit,...
1. The company manufactures products in Z, the variable costs is euro 6 per 1 unit, selling price - 9 euro. Month of the product output was 20 000 units. Fixed costs (production, administration, cost of sales) the total amount per month 47 000 euro, variable costs 120 000 euro. What could be contribution margin and profit in month, if the sales volume would be 10 000 units? What will be the profit if sold 17 000 units
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs...
Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company. Multiple Choice $1,560,000. $2,000,000. $2,200,000. $2,895,652. $2,460,000.
Flannigan Company manufactures and sells a single product that sells for $550 per unit; variable costs...
Flannigan Company manufactures and sells a single product that sells for $550 per unit; variable costs are $297. Annual fixed costs are $966,000. Current sales volume is $4,300,000. Compute the current margin of safety in dollars for Flannigan Company Multiple Choice $1,578,360. $2,.200,000. $2,100,000 $2,988,720 $3.,433.189
MC Qu. 159 Flannigan Company manufactures and sells... 005 variable costs are $378. Annual fixed costs are $993,600...
MC Qu. 159 Flannigan Company manufactures and sells... 005 variable costs are $378. Annual fixed costs are $993,600 Current sales Flannigan Company manufactures and sells a single product that sells for $700 per volume is $4,360,000. Compute the contribution margin per unit 10641
I. A company sells a product which has a unit sales price of $10, unit variable...
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Kingbird, Inc. manufactures souvenirs and sells the products to souvenir shops across Canada. Lisa McKay is...
Kingbird, Inc. manufactures souvenirs and sells the products to
souvenir shops across Canada. Lisa McKay is the new owner, and is
concerned about the low margins. She would like to find a way to
improve the company’s profitability. The accountant provides her
the following financial information: sales are $306,000, of which
60% is cost of goods sold. Cost of goods sold consists of direct
materials (20%), direct labour (30%), and fixed manufacturing
overhead (50%). Operating expenses consist of variable expenses...
Subject 3: Exchange Rates and International Finance (30%) The sales manager of a US company trades...
Subject 3: Exchange Rates and International Finance (30%) The sales manager of a US company trades iPhones in three different markets, Europe (Eurozone), UK and the USA, has just received a total amount of $1million from the selling of 1,000 iPhones (each iPhone costs $1,000). He has a week available until the payment of firm's suppliers and employees' salaries. The current exchange rates between the currencies of the three markets (USD $, euro € and GBP £), are: Eėjs =...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are 545, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $15 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Flannigan Company manufactures and sells a single product that sells for $550 per unit; variable costs are $297. Annual fixed costs are $966,000. Current sales volume is $4,300,000. Compute the current margin of safety in dollars for Flannigan Company Multiple Choice $1,578,360. $2,.200,000. $2,100,000 $2,988,720 $3.,433.189
MC Qu. 159 Flannigan Company manufactures and sells... 005 variable costs are $378. Annual fixed costs are $993,600 Current sales Flannigan Company manufactures and sells a single product that sells for $700 per volume is $4,360,000. Compute the contribution margin per unit 10641
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Kingbird, Inc. manufactures souvenirs and sells the products to
souvenir shops across Canada. Lisa McKay is the new owner, and is
concerned about the low margins. She would like to find a way to
improve the company’s profitability. The accountant provides her
the following financial information: sales are $306,000, of which
60% is cost of goods sold. Cost of goods sold consists of direct
materials (20%), direct labour (30%), and fixed manufacturing
overhead (50%). Operating expenses consist of variable expenses...
Subject 3: Exchange Rates and International Finance (30%) The sales manager of a US company trades iPhones in three different markets, Europe (Eurozone), UK and the USA, has just received a total amount of $1million from the selling of 1,000 iPhones (each iPhone costs $1,000). He has a week available until the payment of firm's suppliers and employees' salaries. The current exchange rates between the currencies of the three markets (USD $, euro € and GBP £), are: Eėjs =...
Variable and Absorption Costing Chandler Company sells its product for $104 per unit. Variable manufacturing costs per unit are 545, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $15 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
Most questions answered within 3 hours.
-
Describe the function of a Change Control Board.
When calculating Planned Value (PV), what is the...
asked 1 minute ago -
The customer help center in your company receives calls from
customers who need help with some...
asked 12 minutes ago -
A manufacturer wished to compare the wearing qualities of two
different types of automobile tires, A...
asked 10 minutes ago -
Write a MATLAB script file that will sum all the positive
entries in V and stop...
asked 19 minutes ago -
The objective of this assignment is to demonstrate an
understanding of key course concepts and reflect...
asked 21 minutes ago -
A plant's flower colour is determined by the pathway shown
below:
white1 ----Gene A----->
white2----Gene
B---->Blue...
asked 27 minutes ago -
Sketch an acceleration-versus-time
graph for an object, starting with some initial speed, traveling on
a flat...
asked 34 minutes ago -
Bi2O3(s) + 2C (s) yields 2 Bi (s) + 3 CO (g)
What substances are in...
asked 41 minutes ago -
Describe the relationship between the free energy change for a
spontaneous process and the amount of...
asked 37 minutes ago -
Overproduction of uric acid in the body can be an indication of
cell breakdown. This may...
asked 55 minutes ago -
I very foolishly got in a fight with Big Joe during our last
basketball game. He...
asked 1 hour ago -
Block 1 (15 kg) is located on the surface of a
table. A rope pulls on...
asked 54 minutes ago