Under the fixed exchange rate system, the dollar could be devalued only if all countries agreed to simultaneously revalue against the dollar
Indicate whether the statement is true or false.
TRUE
Devaluation of the dollar was no easy matter. Under the Bretton Woods provisions, any other country could change its exchange rates against all currencies simply by fixing its dollar rate at a new level. As the key currency in the fixed exchange rate system, the dollar could be devalued only if all countries agreed to simultaneously revalue against the dollar.
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Indicate whether the statement is true or false
Davidson Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows:
Direct materials $108,000 Direct labor 156,000 Variable factory overhead 70,000 Fixed factory overhead 168,000 Total costs $502,000 Of the fixed factory overhead costs, $72,000 are avoidable. Assuming there is no other use for the facilities. What is the highest price Davidson Company should be willing to pay for 5,000 units of the part? A) $264,000 B) $334,000 C) $406,000 D) $502,000