BUSN 3200 2021 T1 Final Exam - Larissa Medeiros PDF

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BUSN 3200 Final Exam - Monday, April 19, 2021 8:30 am to 11:30 am. Numeric Answers: Unit 1 1) For skimming strategy: Margin % = (34.28 - 9.60) / 34.28 = 71.99% Margin in dollar = 22,950.69 34.28 x 930 = 31,880.40 31,880.40 x 71.99% = 22,950.69 For Penetration strategy : Margin % = (18.34 – 9.60) / 18.34 = 47.65% Margin in dollar = 33,557.80 18.34 x 3840 = 70,425.60 79,425.69 x 47.65% = 33,557.80 The Penetration strategy, because is the one will provide the greatest profit in dollar Unit 2 3) 1 CAD = 1.52 EUR Original cost price in CAD = 1.06 Original retail price in CAD = 2.36 0.55= (X – 1.06) / X X = 2.36 1 CAD = 1.39 EUR New cost price in CAD = 1.03 New retail price in CAD = 2.50 0.5880 = (x – 1.03) / x x = 2.5 Unit 3 6) Cost per bicycle for domestic sales = 461.07 105,600 + (272.5 x 560) = 258,200 258,200 / 560 = 461.07 Cost per bicycle for domestic and foreign sale = 330.20 105,600 + ( 272.5 x 1830) = 604,275 604,275 / 1830 = 330.20 Student Name: Larissa Santos Medeiros Student Number: 300294368 Section #: 001

BUSN 3200 Final Exam - Monday, April 19, 2021 8:30 am to 11:30 am. The domestic and foreign sale because the cost per bike is cheaper than only for domestic sale The selling price for domestic sale = 649.39 0.29 = ( x – 461.07) / x x = 649.39 The selling price for domestic and foreign sale = 465.07 0.29 = ( x – 330.20) / x X = 465.07 Unit 4 7) Initial Inventory turn = 4.45 130800/29400 = 4.45 New Inventory turn = 4.51 1526400/338400 = 4.51 The new turnover is the better one, since inventory turnover indicates how many time a company has sold and replaced the stock during a given period, the higher the inventory, the better for the company. High inventory could mean that the company is selling goods quickly. Unit 5 10) AZ margin = 91.09% Margin % = (202 – 18)/202 = 91.09% JJ margin = 84.70% Margin % = (202 – 30.90)/202 = 84.70%

Short Answer: 12) The ship is seizure under the transportation risk. The person who is going to pay depends which Incoterm was used in the contract. 13) My home country is Brazil, so I believe that due the situation and the actual president, the biggest challenge risk at the moment would be the country risk. It has a lot uncertain around the President, that could lead to a country risk 15) A export credit agency is an agency that help facilitate domestic companies international export, help at trade finance. They can provide loan, loan guarantee and

Student Name: Larissa Santos Medeiros Student Number: 300294368 Section #: 001

BUSN 3200 Final Exam - Monday, April 19, 2021 8:30 am to 11:30 am. insurance to help export to another country. In the other hand, Credit Agency collect information about individuals and company debts to help indicate the creditworthiness. 17) I would sell for Beta, because even their gross margin is 35% their inventory turns are 5, which mean that they sell the products quickly and will need to replace quickly, so is better for me as a manufacture sell to a company with a better inventory turn 19 ) I believe with the all right documents and agreement in place the chance of a dispute is really low, because in the contract it will be written the responsibilities for each part, and what happened in case one of the part doesn’t met their obligations. Case analysis answer: 21) The law of supply and demand states the relationship between the price of the good and the willingness of customer to buy the good. As the price increase more people will supply but will have less demand, as the price fall less people will supply but will have more demand. So the countries can manipulate their currency exchange rate to attract more exportation however this can affect their foreign-exchange reserves. As state in the articles manipulate their own currency can increase their export at expense of others. 22) The reason is that US dollar is one of the currency most popular is because of their strength, most country use it as based for the other currency rates and also used for international transaction. Bonus Question The first one could be the Viable UK export, because its important first to know if is a viable export, than I believe would be lack of insurance, being an export is important to have insurance for their products, if something goes wrong, you as export and have insurance will could have you money back, than in third could be lack of finance, because as an export will after insurance, finance is important, so you can export you products safely, and last I will rank the no net cost to the taxpayer, because you need to do the transaction first to deal with the tax, so I believe all other need to be in shape to worry about the taxpayer.

Student Name: Larissa Santos Medeiros Student Number: 300294368 Section #: 001...