If One USDollar = 11

question 46

Multiple Choice

If one U.S.dollar = 11.76 Mexican pesos, then the reciprocal exchange rate equals:

• A)$11.76.
• B)Ps 3.92.
• C)Ps 0.008.
• D)Ps 0.085.
• E)$0.085.

---

Definitions:

Purchasing Per Unit

The cost associated with buying an individual unit of product or material.

Relevant Costs

Costs that should be considered when making business decisions because they are future costs that differ between alternatives.

Fixed Overhead

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Released Facilities

Properties, equipment, or facilities that are no longer under contract or reserved, and are available for use or lease.