What are the total carrying costs

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1. ABC Company sells 4,994 chairs a year at an average price per chair of $199. The carrying cost per unit is $32.43. The company orders 479 chairs at a time and has a fixed order cost of $25.3 per order. The chairs are sold out before they are restocked. What are the total carrying costs?

2. ABC Company sells 4,530 chairs a year at an average price per chair of $175. The carrying cost per unit is $39.27. The company orders 331 chairs at a time and has a fixed order cost of $121.9 per order. The chairs are sold out before they are restocked. What are the total shortage costs?

3. The exchange rate is 0.8863 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 9,678 Swiss francs?

4. Suppose it takes 1.39 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 15% against the pound over the next 30 days. What is the U.S. dollar/Pound exchange rate in 30 days?

5. In New York, you can exchange $1 for €0.8698 or £0.6758. Suppose that, in Berlin, £1 costs €1.1981. How much profit can you earn on $31,683 using triangle arbitrage?

6. ABC Company sells 4,321 chairs a year at an average price per chair of $167. The carrying cost per unit is $37.99. The company orders 500 chairs at a time and has a fixed order cost of $42 per order. The chairs are sold out before they are restocked. What is the economic order quantity?

7. You can exchange $1 for either C$1.2819 or ¥114.11. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$.

8. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.3406 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.153 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)?

9. Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $2,571. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.1256?

10. Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.0617 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 0.9631 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?

11. The exchange rate is 0.9882 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss franc?

12. Suppose it takes 1.11 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 11% against the pound over the next 30 days. What is the Pound/US Dollar exchange rate in 30 days?That is, how many pounds can 1 dollar buy in 30 days?

13. ABC Company sells 2,082 chairs a year at an average price per chair of $163. The carrying cost per unit is $15.32. The company orders 563 chairs at a time and has a fixed order cost of $76 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model?

14. You just returned from a trip to Venezuela and have 6,856 bolivaresfuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivaresfuertes is 0.1344?

15. Suppose one U.S. dollar can purchase 133 yen today. If the yen depreciates by 11% tomorrow, how many yen could one U.S. dollar buy tomorrow?

Reference no: EM13853483

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