Table 141Hypothetical Costs of Producing an Automobile for Toyota Inc

question 72

Multiple Choice

Table 14.1.Hypothetical Costs of Producing an Automobile for Toyota Inc.of Japan

-Refer to Table 14.1.Assume that Toyota Inc.imports steel from U.S.suppliers,whose costs are denominated in dollars,while all other inputs are obtained from Japanese suppliers whose costs are denominated in yen.If the yen's exchange value appreciates from 200 yen = $1 to 100 yen = $1,the dollar-equivalent cost of a Toyota automobile equals:

• A) $24,000
• B) $30,000
• C) $36,000
• D) $42,000

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Definitions:

Assets

Economic resources owned or controlled by a business or an individual which are expected to produce future benefit.