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I am trying to figure out if i am on the correct path here. If not please provide guidance CURRENT COST OF RETAIL SALES EXCHANGE
I am trying to figure out if i am on the correct path here. If not please provide guidance
CURRENT COST OF RETAIL SALES EXCHANGE RATE COMMISSION PRODUCTION $ 8,000,000.00 1.34 0.05 0.80 SALES 1.25 $ 10,720,000.00 COMMSSION PRODUCTION COST $ 536,000.00 $ 8,576,000.00 GAIN $ 1,608,000.00 670000 500000 BREAK EVEN RATE 1.34 Sales commison production cost gain $ 10,000,000.00 $ 500,000.00 $ 8,000,000.00 $ 1,500,000.00 Break Even Rate 625000 500000 1.25 East Coast Yachts Goes International Case Study Question Three Jarek Jachowicz, the dealer, wants to add East Coast Yachts to his current retail line. Jarek has told Larissa that he feels the reta will be approximately 8 million per month. All sales will be made in euros, and Jarek will retain 5 percent of the retail sales as commission, which will be paid in euros. Because the yachts will be customized to order, the first sales will take place in one m Jarek will pay East Coast Yachts for the order 90 days after it is filled. This payment schedule will continue for the length of the between the two companies. Larissa is confident the company can handle the extra volume with its existing facilities, but she is unsure about any potential fi risks of selling yachts in Europe. In her discussion with Jarek she found that the current exchange rate is $1.34/. At this exchan the company would spend 80 percent of the sales income on production costs. This number does not reflect the sales commis be paid to Jarek. Jarek Jachowicz, the dealer, wants to add East Coast Yachts to his current retail line. Jarek has told Larissa that he feels the reta will be approximately 8 million per month. All sales will be made in euros, and Jarek will retain 5 percent of the retail sales as commission, which will be paid in euros. Because the yachts will be customized to order, the first sales will take place in one m Jarek will pay East Coast Yachts for the order 90 days after it is filled. This payment schedule will continue for the length of the between the two companies. Larissa is confident the company can handle the extra volume with its existing facilities, but she is unsure about any potential fi risks of selling yachts in Europe. In her discussion with Jarek she found that the current exchange rate is $1.34/. At this exchan the company would spend 80 percent of the sales income on production costs. This number does not reflect the sales commis be paid to Jarek. Jarek Jachowicz, the dealer, wants to add East Coast Yachts to his current retail line. Jarek has told Larissa that he feels the reta will be approximately 8 million per month. All sales will be made in euros, and Jarek will retain 5 percent of the retail sales as commission, which will be paid in euros. Because the yachts will be customized to order, the first sales will take place in one m Jarek will pay East Coast Yachts for the order 90 days after it is filled. This payment schedule will continue for the length of the between the two companies. Larissa is confident the company can handle the extra volume with its existing facilities, but she is unsure about any potential fi risks of selling yachts in Europe. In her discussion with Jarek she found that the current exchange rate is $1.34/. At this exchan the company would spend 80 percent of the sales income on production costs. This number does not reflect the sales commis be paid to Jarek. Jarek Jachowicz, the dealer, wants to add East Coast Yachts to his current retail line. Jarek has told Larissa that he feels the reta will be approximately 8 million per month. All sales will be made in euros, and Jarek will retain 5 percent of the retail sales as commission, which will be paid in euros. Because the yachts will be customized to order, the first sales will take place in one m Jarek will pay East Coast Yachts for the order 90 days after it is filled. This payment schedule will continue for the length of the between the two companies. Larissa is confident the company can handle the extra volume with its existing facilities, but she is unsure about any potential fi risks of selling yachts in Europe. In her discussion with Jarek she found that the current exchange rate is $1.34/. At this exchan the company would spend 80 percent of the sales income on production costs. This number does not reflect the sales commis be paid to Jarek. Jarek Jachowicz, the dealer, wants to add East Coast Yachts to his current retail line. Jarek has told Larissa that he feels the reta will be approximately 8 million per month. All sales will be made in euros, and Jarek will retain 5 percent of the retail sales as commission, which will be paid in euros. Because the yachts will be customized to order, the first sales will take place in one m Jarek will pay East Coast Yachts for the order 90 days after it is filled. This payment schedule will continue for the length of the between the two companies. Larissa is confident the company can handle the extra volume with its existing facilities, but she is unsure about any potential fi risks of selling yachts in Europe. In her discussion with Jarek she found that the current exchange rate is $1.34/. At this exchan the company would spend 80 percent of the sales income on production costs. This number does not reflect the sales commis be paid to Jarek. Ignoring taxes, what are East Coast Yacht's projected gains or losses from this proposed arrangement at the current exchange rate of $1.34/? What will happen to profits if the exchange rate changes to $1.25/? At what exchange rate will the company break evenStep by Step Solution
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