Please answer. thanks8. Longhorn Co. produces hospital equipment. All of its revenues are in US dollars, and half of its expenses require outflows in Philippine pesos to pay for Philippine materials. Most of Longhorn's competition is from US firms that have no international business at all. Why will Longhorn's profit be likely to decrease if the peso strengthens relative to the dollar?

The exchange rate is the rate at which the currency of home country will be exchanged with the…

Please answer. thanks 8. Longhorn Co. produces hospital equipment. All of its revenues are in US dollars, and half of its expenses require outflows in Philippine pesos to pay for Philippine materials. Most of Longhorn's competition is from US firms that have no international business at all. Why will Longhorn's profit be likely to decrease if the peso strengthens relative to the dollar?

Please answer. thanks 8. Longhorn Co. produces hospital equipment. All of its revenues are in US dollars, and half of its expenses require outflows in Philippine pesos to pay for Philippine materials. Most of Longhorn's competition is from US firms that have no international business at all. Why will Longhorn's profit be likely to decrease if the peso strengthens relative to the dollar?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter22: International Financial Management

Section: Chapter Questions

Problem 4P

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Davao has a potential foreign customer that has offered to buy 1,500 tons atP450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity?
Davao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? Answer: 221,500 Without prejudice to your answers to previous questions, and assume that Davao plans to market its product in a new territory. Davao estimates that an advertising and promotion program costing P61,500 annually would need to be undertaken for the next two or three years. In addition, a P25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Davao’s current after-tax income of P94,500? Answer: 307.5
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