User Account

All Pages

What is the pass-through rate by Volvo

Assignment Help Accounting Basics
Reference no: EM132594588

Question - USD has significantly depreciated against EURO since mid 2001. However, US imports from Europe did not decline as we expected in response to increasing European costs. One important reason for this somewhat counterintuitive outcome is the European exporter's pricing practices. Many manufacturers and retailers in US did not face a one to one price increase in their imported product costs. For instance, CIF list price of Volvo Cross-Country C70 model in September was SKR290,000. In September 2001, at the prevailing spot rate of USD/SKR 9.35, the dollar cost of the car for importing dealers was $34,118 after 10% import duties. With the additional 15% dealer markup, the sticker price of the car was $39,235. As of May 2005, the CIF cost of the same model (before 10% import duties) was $33,000. Assuming that the dealers pay the same customs duties and still have a 15% mark-up, and May 2005 exchange rate of USD/SKR 7.45, what is the pass-through rate by Volvo to its US retail customers?

Reference no: EM132594588

Questions Cloud

Determine the dollar value of cash provided : Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided
Investment performance of 350 portfolio managers : Suppose you observe the investment performance of 350 portfolio managers for 5 years and rank them by investment returns during each year.
What tax advice would offer to calvin in planning : Why does the tax law allow a taxpayer to defer gains accrued on a capital asset until the taxpayer actually sells the asset? What tax advice would you offer
Reviewing the business plan prior to budget preparation : You are preparing to establish budgets.List three questions you might ask yourself when reviewing the business plan prior to budget preparation
What is the pass-through rate by Volvo : USD has significantly depreciated against EURO since mid 2001. What is the pass-through rate by Volvo to its US retail customers
List four possible external factors that could contribute : List four Possible external factors that could contribute to profit or loss
Evaluate the importance of balance of payments : Please evaluate the importance of balance of payments. Propose the utility of examining the balance-of-payments data for a prospective country?
Which statements best characterizes managerial accountants : Which statements best characterizes managerial accountants of the past?They were located in operating departments and worked with other managers.
Cost of sales and expenses for the business in a specific : What type of budget would you refer to if you wanted to analyse revenue, cost of sales and expenses for the business in a specific period?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd