Cost of Abalone Country Australia Chile Ireland New Zealand South Africa CLP Abalone Cost AUD 93,500 ISK NZD ZAR 640,00O 50,990,000 5,400,000 104,000 Exchange Rate $1 U.S. 1.1 AUD 585 CLP 61 ISK 1.3 NZD 7.8 ZAR %3D Refer to the table above. An international seafood supplier is offered 9.46 million yen today for 1000 pounds of abalone frozen in the shell. One thousand pounds of abalone can be sourced from various countries at the prices shown above. The current market exchange rates between the United States and the other relevant currencies are also shown. In addition, $1 U.S. = 104 yen. What is the value, in U.S. dollars, of the best deal the international seafood supplier can make? O $9962 O $12,462 O $10,962 O $11,962
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- Exercise 15-31 (Algo) International Transfer Prices: Ethical Issues (LO 15-4) Whitehill Chemicals has two operating divisions. Its Formulation Division in the United States mixes, processes, and tests basic chemicals, and then ships them to Ireland, where the company's Commercial Division uses the chemicals to produce and sell various products. Operating expenses amount to $27.0 million in the U.S. and $79.0 million in Ireland exclusive of the costs of any goods transferred from the U.S. Revenues in Ireland are $205 million. If the chemicals were purchased from one of the company's Irish mixing divisions, the costs would be $40.0 million. However, if it had been purchased from an independent U.S. supplier, the cost would be $53.0 million. The marginal income tax rate is 20 percent in the U.S. and 12 percent in Ireland. Required: What is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($40.0 million and $53.0 million)?…Problem 20-03 (algo) The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities Product A B C D E F Apparel 20,000 16,000 12,000 8,000 4,000 0 Chemicals(tons) 0 8 16 24 32 40 U.S. Production Possibilities Product R S T U V W Apparel 60,000 48,000 36,000 24,0000 12,000 0 Chemicals(tons) 0 12 24 36 48 60 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? If so, what product should each produce? China should produce . The United States should produce . b. What is the total gain in apparel and chemical output that would result from such specialization? Apparel: units Chemicals: ton(s) c. What are the limits of the…Exercise 15-31 (Algo) International Transfer Prices: Ethical Issues (LO 15-4) Whitehill Chemicals has two operating divisions. Its Formulation Division in the United States mixes, processes, and tests basic chemicals, and then ships them to Ireland, where the company's Commercial Division uses the chemicals to produce and sell various products Operating expenses amount to $27.5 million in the U.S. and $79.5 million in Ireland exclusive of the costs of any goods transferred from the U.S. Revenues in Ireland are $210 million. If the chemicals were purchased from one of the company's Irish mixing divisions, the costs would be $40.5 million. However, if it had been purchased from an independent U.S. supplier, the cost would be $53.5 million. The marginal income tax rate is 20 percent in the U.S. and 12 percent in Ireland, Required: What is the company's total tax liability to both jurisdictions for each of the two alternative transfer pricing scenarios ($40.5 million and $53.5 million)?…
- .noitudifaib Isimbnid eri to abitan9106 2169 Of Ixen ert to A vitose ni oni lliw ito ten other video Task 1: tam A U.S.-based company imports furniture from Germany. In accordance with the contract, the U.S. company will have to pay €8,000,000 for a shipment of furniture in 30 days. Information about the spot and forward rates is given below: Current spot rate EUR/USD 0.800 EUR/USD 0.799 30-day forward rate 1. Describe the risk that the U.S. company is exposed to. (1 USD costs 0.8 EUR) AlesT it muminim en 169 Isait ati to 19hsup dhuot erit ni mit is not sure 29mu6 1900sm erT .000,000, Are ai etsmitee mumixem erit bris 000,000,r3 ai eunevet 29lsa to stsmitee .betudinteib ylmotinu ens elsa erlt terit 19hsup rihuot erlt not euneven 2elsa to eulsv betoqxe erit animated 2. Explain how the U.S. company can hedge the risk by using the forward contract. q ert bri2. Judge whether the following price terms are correct or not. If not, make corrections (1) RMB55 per ton CIFC5 Shanghai (2) Pound 200 per carton CFR New Zealand (3) FF 150 per ton FOB New York-Discount Rate $80,000.00 $60,000.00 $40,000.00 $20,000.00 $(20,000.00) $(40,000.00) $(60,000.00) $(80,000.00) Export Prices O Input Prices Discount Rate Sensitivity Analysis -Export Prices The following image graphs NPV based on varying 4 different assumptions. This is sensitivity analysis. Which of the 4 variables is the NPV LEAST sensitive to? O Market Share -Input Prices -Market Share -15.00% -10.00% -5.00% 0.00% 5.00% 10.00% 15.00%
- Please calculate the VCC, VFD, TVFD for this imported consignment of TV's from Japan TOTAL VALUE OF SHIPMENT , CIF MONTREAL , CDN $100,000 RATE OF CUSTOMS DUTY: 10% RATE OF GST : 5% INTERNATIONAL INSURANCE: CDN $2000 INTERNATIONAL FREIGHT: CDN $3000 DOMESTIC INSURANCE: CDN $1000 DOMESTIC FREIGHT: CDN $3000 SELLING COMMISSION: CDN $5000 BUYING COMMISSION: $3000IF 2c Your Canadian company processes raw sugar for sale in the United States, and thefirm has just received a container of raw material from the UK. You have an invoicethat asks you to pay £20,000 in 30 days. The current exchange rate is $1.75/£. c. If you could lock into a forward rate today of $1.85/£ for delivery in 30 days, whatshould you do?One Big Mag Burger: In KSA = 10 Riyal In USA = 4.3 $ Exchange rate: 1$ = 3.75R • Tell if the value of Riyal is over or under valued in terms of US dollar.
- Question 1 – Transfer pricing, break-even and variance calculation. KITCHEN PRO GmbH is a successful German-based multinational provider of high-end integrated kitchen systems. KITCHEN PRO purchases microwaves, ovens, refrigerators etc., and sells them to household consumers worldwide. KITCHEN PRO reports its financial statements in Euro (€). In early 2020 KITCHEN PRO is considering an acquisition of a Singapore-based company, ACE, because it wishes to fully control ACE’s wafflemaker and frying pan production and sales. KITCHEN PRO wants to include ACE’s products in its integrated kitchen offerings. In particular,KITCHEN PRO plans to sell ACE’s products exclusively as part of its kitchen systems, i.e. there shall be no external sales of ACE’s wafflemakers and frying pans following such an acquisition. The Questions : (a) KITCHEN PRO’s finance manager is aware that Singapore’s corporate income tax rate is lower than that of Germany. She must determine the transfer price of ACE’s…Honesto imported a harvester from the U.S. with a total cost of 1,100,000 before Customs Duties. The importation is subject to 10% Customs duties. What is the VAT on importation if the importation is made by an agricultural cooperative?* a. P 158,400 b. P 144,000 c. P 129,600 d. P 0Question Feip Suppose that a manufacturer can produce a part for $9.00 with a fixed cost of $5,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $11.00, which includes transportation. a. If the anticipated production volume is 1,500 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $ (Simplify your answer.) PI ry sit nas mu Enter your answer in the answer box and then click Check Answer. parts remaining Check Answer Clear All Type here to search