Exchange rates are 120 yen per dollar, 0.8 euro per dollar, and 10 pesos per dollar. A bottle of beer in New York costs 6 dollars, 1,200 yen in Tokyo, 7.2 euro in Munich, and 50 pesos in Cancun. Where is the most expensive and the cheapest beer in that order?

Most expensive in Tokyo, Least expensive in Cancun

Explanation:

Given: Exchange rates 1 $= 120 Yen

                                       1$ =0.8 Euro

                                       1$ = 10 pesos

Now, a bottle of beer costs in New York = 6$

                                              in Tokyo = 1200 Yen i.e  = 10$

                                              in Munich = 7.2 Euro i.e = $9

                                              in Cancun = 50 pesos = = $5

Thus, it can be seen, the beer is least expensive in Cancun, then in New York, followed by Munich and lastly most expensive in Tokyo.

781 units

Explanation:

Under the CVP concept, the break-even point is calculated by dividing the fixed costs by the contribution margin per unit.

i.e., break-even point = fixed cost/ contribution margin per unit

Currently, fixed costs are $213,000, an increase of 10% will take to

=(10/100 x $213,000) + $213,000

=$21,300 + 213,000

=$234, 300

The selling price is $250, an increase of 40%

=$250 x 1.4

=$350

variable cost will remain the same this year and the following year

Current variable  costs are 20% of sales

=20/100 x 250

=0.2 x 250

=$50

Contribution margin will be new selling price - variable costs

=$350-50

=$300

Break-eve point = $234, 300/300

=781 units