Ozzie Nuts Pty Ltd Import Walnuts from California at a Landed

question 19

Multiple Choice

Ozzie Nuts Pty Ltd import walnuts from California at a landed cost of US$25.00 per case and sell 10 000 cases per year at A$30.00.Currently the exchange rate is AUD$1 = USD$0.9000 and the company's gross profit would be A$22 222 for a year at this exchange rate.Experts are predicting that the exchange rate will fall to USD$0.8300.If the experts are correct,what will happen to Ozzie Nuts' full year gross profit if the selling price remains unchanged?

• A)Gross profit will not change.
• B)Gross profit will increase by A$23 428.
• C)Gross profit will fall to A$1205.
• D)The company will make a loss on the transactions.
• E)The company will continue to make a profit.

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Definitions:

Pure Comparative Negligence

A defense accepted in some states whereby the defendant is not liable for the percentage of harm that he or she can prove can be attributed to the plaintiff’s own negligence.

25%

A quarter of something, often referred to in contexts of percentages, rates, or divisions.

Implied Assumption

An unstated understanding or expectation within an agreement or contract, often derived from the actions of the parties or the context of the agreement.

Expressly Agrees

A term indicating that a party has explicitly consented to an agreement or condition, leaving no doubt about their intention.