The total fixed cost per month is 3,075,000 Mexican pesos. The total variable cost per month...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The total fixed cost per month is 3,075,000 Mexican pesos. The total variable cost per month is 1,065,000 Mexican peso. The total revenue per month is USD 388,550. The total number of units of all products (pants, shirts, jackets and other) is 56,222 units per month. Suppose everything else remains the same, and the only change is the exchange rate which goes from 13 Mexican Pesos:1 USD to 15 Mexican Pesos :1 USD. How much is the fixed cost in USD now after the exchange rate changes to 15:1? How much is the variable cost in USD now after the exchange rate changes to 15:1? How much is the monthly pre-tax income (pre-tax income-revenue- fixed cost- variable cost) in USD now after the exchange rate changes to 15:1? How much is the weighted average contribution margin per unit in USD now after the exchange rate changes to 15:1? Hint: weighted average contribution margin per unit= (total revenue-total variable cost)/total number of units of all products. How many units does SEWMEX have to produce per month to break even now if the exchange rate changes to 15:1? Hint: number of units-fixed cost/weighted average contribution margin per unit Please write your answer in the space below and show your calculations. The total fixed cost per month is 3,075,000 Mexican pesos. The total variable cost per month is 1,065,000 Mexican peso. The total revenue per month is USD 388,550. The total number of units of all products (pants, shirts, jackets and other) is 56,222 units per month. Suppose everything else remains the same, and the only change is the exchange rate which goes from 13 Mexican Pesos:1 USD to 15 Mexican Pesos :1 USD. How much is the fixed cost in USD now after the exchange rate changes to 15:1? How much is the variable cost in USD now after the exchange rate changes to 15:1? How much is the monthly pre-tax income (pre-tax income-revenue- fixed cost- variable cost) in USD now after the exchange rate changes to 15:1? How much is the weighted average contribution margin per unit in USD now after the exchange rate changes to 15:1? Hint: weighted average contribution margin per unit= (total revenue-total variable cost)/total number of units of all products. How many units does SEWMEX have to produce per month to break even now if the exchange rate changes to 15:1? Hint: number of units-fixed cost/weighted average contribution margin per unit Please write your answer in the space below and show your calculations.
Expert Answer:
Answer rating: 100% (QA)
To calculate the fixed cost in USD after the exchange rate changes to 15 Mexican Pesos MXN to 1 USD ... View the full answer
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date:
Students also viewed these corporate finance questions
-
Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be...
-
Complete the questions for the enclosed case, Cat & Joe Case. Required Questions:1. List and briefly describe the advantages and disadvantages inherent to the food truck business model as...
-
A new sandwich chain from UK is planning to expand its market to China. (a) Discuss TWO entry mode options which are realistic given the product (15 marks) type and the target country suggested. (b)...
-
Ridge Crest Company has beginning Retained Earnings of $39,000, ending Retained Earnings of $41,500, and a net income of $23,500. What was the amount of dividends declared during the year: $15,500...
-
Explain systemic risk as it relates to the futures market. Explain how the Financial Reform Act of 2010 attempts to monitor systemic risk in the futures market and other markets.
-
What is the name of the compound [CoCl(NH 3 ) 5 ]Cl 2 ? a) Pentaamminetrichlorocobalt(III) chloride b) Pentaamminechlorocobalt(III) chloride c) Pentaamminechlorocobalt(II) chloride d)...
-
Use your calculator to calculate \(4 \times 8\). Explain how the answer agrees with what was expected.
-
Data for Odgers Inc. are presented in P12-9A. Further analysis reveals that accounts payable pertain to merchandise creditors. Instructions Prepare a statement of cash flows for Odgers Inc. using the...
-
Business Proposal Assignment You work as a communication specialist at Warby Parker, reporting to co-CEO David Gilboa. Using the skills you've been practicing in this course, respond to this...
-
Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and sell them to retail stores. Tikkity Tock uses a perpetual inventory system, weighted average...
-
please be sure of your answers. O $118,500 O $103,500 O $100,500 O $80,000 O $106,500. Murphy's, Inc., has 25,000 shares of stock outstanding with a par value of $1 per share. The market value is $10...
-
Explain, using examples, the difference between a principal and an agent.
-
Poverty is described as a relative concept what does this mean?
-
Why does the MPC 1MPS 51?
-
Describe the three problems that make the CPI an imperfect measure of the cost of living.
-
How does the extent of income inequality in your country compare to that of other nations around the world?
-
2. A company is planning to start an investment, for which there are 3 alternatives. The company can choose only one of these, in other words: the projects are mutually exclusive. Data given: All...
-
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
-
Homemade Leverage what is homemade leverage?
-
The Stancil Corporation provided the following current information: Proceeds from long-term borrowing ................................ $16,400 Proceeds from the sale of common stock...
-
Redo Problem 21 using sales growth rates of 15 and 25 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the...
-
What are the characteristics of closed-end mutual funds?
-
Noah is thinking about investing $1,000 in a global mutual fund. However, the fund is a load fund, which charges a commission of 8.5 percent. The investment company would deduct this fee from Noahs...
-
What are three ways in which you can receive income from your mutual fund investments?
Study smarter with the SolutionInn App