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Oksana_A
14 days ago
10

Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,

000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be?
Business
1 answer:
Scilla [3.2K]14 days ago
8 0
$71,000
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Given:

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Spot rate (USD = 1.00 AUD) 0.7646

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0.7646 USD = 1.00 AUD................... (2)

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Removing 1.00 USD results in:

1.3443 SGD = 1.3079 AUD

By dividing by 1.3079, we calculate:

1.3443 / 1.3079 SGD =  1.3079 / 1.3079 AUD

Thus, we find that 1.0278 SGD equals 1.00 AUD.

Thus, the exchange rate from Singapore dollar to Australian dollar is (SGD = 1.00 AUD) 1.0278.

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Anne's Australian dollars = Amount in Singapore dollars / Singapore dollar to Australian dollar exchange rate = 1,100 / 1.0278 = 1,070.24712979179 Australian dollars

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