Department L & M of MNC enter into the following internal sale, Department L produces product N at a marginal cost per unit of $500. Department M purchases a quantity of N Product. If a unit is transferred internally, Department L would lose $125 contribution could be earned by external sales, the item can be purchased externally for $750, the minimum limit is:

a.

$ 500.

b.

$ 625.

c.

$ 825.

d.

$ 750.

Hugh, Inc. purchased merchandise for 300,000 FC from a British vendor on November 30, 2019. Payment in British pounds is due January 31, 2020. Exchange rates to purchase 1 FC is as follows: Nov. 30, 2019 1FC = $1.65, Dec. 31, 2019 1 FC = $1.62, Jan.31,2020 1 FC = $1.59. In the December 31, 2019 income statement, what amount should Hugh report as foreign exchange gain or loss from this transaction?

a.

$3,000 loss

b.

$3,000 gain

c.

$9,000 gain

d.

$9,000 loss