Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.] Month November December January February March April Miles Traveled by Tour Buses 8,500 10,600 12,700 15,000 20,000 8,000 Cost 11,400 real 11,600 11,700 12,000 12,500 11,000 EX 6-30 (Static) Part 1: Rio Bus Tours has incurred the following bus maintenance costs...

Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.] Month November December January February March April Miles Traveled by Tour Buses 8,500 10,600 12,700 15,000 20,000 8,000 Cost 11,400 real 11,600 11,700 12,000 12,500 11,000 EX 6-30 (Static) Part 1: Rio Bus Tours has incurred the following bus maintenance costs...

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter11: Managing Transaction Exposure

Section: Chapter Questions

Problem 41QA

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1. Refer to the original data. Assume again that Polaski Company expects to sell only 25,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 5,000 Rets. The Army would pay a fixed fee of $1.80 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the tmits. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. If Polaski Comprany accepts the order, by how much will profits increase or decrease for the year? 2. Assume the srune situation as that described in requirement 2, except that the company expects to sell 30,000 Rets through regular channels next year. Thus, accepting the U.S. Army's order would require giving up regular sales of 5,000 Rets. If the Army's order is accepted, by how much will profits increase or decrease from what they would be if the 5,000 Rets were sold through regular…
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