Southampton Electronics Manufactures a Range of Portable Heaters -
the Variable Expense Per Unit Is:

A)£10

question 8

Multiple Choice

Southampton Electronics manufactures a range of portable heaters. Most of the output is exported. $\begin{array}{lrr} \text { Sales. } & \text { 12,000 units } \\ \text { Selling price. } & \text { £25 per unit} \\ \text { Contribution margin ratio. } &40\%\\ \text { Margin of safety percentage. } &30\%\\\end{array}$

-
The variable expense per unit is:

• A)£10.00 per unit
• B)£17.50 per unit
• C)£ 7.50 per unit
• D)£15.00 per unit

---

Definitions:

Interest Rate Parity

A theory which says that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Rates

The predetermined interest rates or currency exchange rates agreed upon for transactions that will be executed at a future date.

Spot Rate

The existing market cost at which a certain asset is offered for buy or sell, ensuring immediate delivery.

Absolute Purchasing Power Parity

An economic theory that states the price of a good in one country should equal the price of the same good in another country when exchanged at the current exchange rate.