Starting with an Exchange Rate of $1 = ¥110,and a Price

question 112

Multiple Choice

Starting with an exchange rate of $1 = ¥110,and a price tag of ¥30,000 for a Japanese good,what happens to the dollar price of the good if the yen appreciates by 6 percent?

• A)the dollar price of the good rises from $272.73 to $289.09
• B)the dollar price of the good falls from $272.73 to $256.37
• C)the dollar price of the good rises from $330,000 to $349,800
• D)the dollar price of the good falls from $330,000 to $310,200
• E)​the dollar price of the good rises falls from $2,700 to $2,560

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Definitions:

Profit Center

A profit center is a branch or division of a company that is treated as a separate unit for the purpose of assessing its revenue-generating ability and profitability.

Department Manager

A professional who oversees the operations and employees of a specific department within a company, ensuring goals and objectives are met.

Authority

The authority or capacity to command, make choices, and ensure compliance.

Responsibility Accounting Reports

Financial reports that measure the financial performance of different segments or departments of an organization, attributing revenues and expenses to the managers responsible.