Business Administration 1220E Study Guide - Cash Flow

Important! 40 Points for those who answer!

Drag the tiles to the boxes to form correct pairs.

Match the given situations to the factors that affect global trade.

Tiles

India’s economy is strong

India’s currency has strengthened compared to China’s

India’s currency is weaker than China’s

India’s weaker currency has allowed more exports

India’s currency has not increased or decreased in value

Pairs

India stops purchasing goods from China because goods are too expensive

China increases sales in India because demand has increased

India cannot sell goods to China because they are more expensive this year

Norah’s Chinese shoe factory had to close because cheaper shoes are now being imported from India.

The price of India’s imported goods have remained consistent last year

1. produces a hard disk drive that sells for $140 per unit. The cost of producing 20,000 drives in the prior year was:

Direct Material

$ 500,000

Direct Labor

$ 300,000

Variable Overhead

$ 100,000

Fixed Cost

$ 1,200,000

Total Cost

$ 2,100,000

At the start of the current year, the company received an order of 2,000 drives from a computer company in china. Management of GK, Inc. has mixed felling about the order. On one hand they welcome the order because they currently have excess capacity. Also, this is company’s first international order. On the other hand, the company in China is only willing to pay $100 per unit.