NorthRim Inc

question 44

Multiple Choice

NorthRim Inc. (NRI) , imports extreme condition outdoor wear and equipment from The Allofit Territories Company (ATC) located in Canada. With the steady decline of the U.S dollar against the Canadian dollar NRI is finding a continued relationship with ATC to be an increasingly difficult proposition. In response to NRI's request, ATC has proposed the following risk-sharing arrangement. First, set the current spot rate of C$1.20/$as the base rate. As long as spot rates stay within 5% (up or down) NRI will pay at the base rate. Any rate outside of the 5% range, ATC will share equally with NRI the difference between the spot rate and the base rate. If NRI had a payable of C$100,000 due today and the current spot rate were C$1.17/$, how much would NRI owe in U.S. dollars?

• A) $83,333
• B) $85,470
• C) $85,837
• D) $117,000

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Definitions:

Dollars of Sales

Refers to the total value, in dollars, of all sales transactions completed over a specific period.

Scatter Diagrams

Graphical representations used to show the relationship between two variables, depicting points on a Cartesian plane.

Volume (Units)

The number of units of product produced, sold, or used.

Horizontal Axis

In graphing, the horizontal axis represents the independent variable and is typically labeled as the x-axis.