After lengthy negotiations a U.S. company has made a deal to sell 100,00 units of a streaming device to an large electronics retailer in Brazil. The Brazilian company is paying 12$ for each unit and will pay in US dollars to the US seller. The U.S. company does not manufacture or assemble the streaming devices but purchases them from a Japanese manufacturer. To make the deal happen, the U.S. company agrees to pay in Japanese Yen. The price for each unit is 1000Yen. The U.S. company estimates its marginal (additional cost per unit) costs ( for warehousing, insurance, transportation, and so on) as an additional .25 per streaming unit.

Exchange rates at the time of signing the agreements are as follows:

USD$ 1 = 125 YEN USD$ 1 = Brazilian Real .57

Questions:

1. On the line below indicate whether the firm earned aprofitor lossfrom this deal and what was the$dollar amount of the profit or loss in total. (Clearly state if a profit or loss was earned, what it was and show profit or loss calculationclearlywith labels in space below)

_________Place word profit or loss on line.

_________Place amount on line.

Show work clearly below:

a)What impact would adepreciationof the Japanese Yen relative to theU.S. dollarhave on the U.S. company's profits/loss on this transaction? You must look at the relevant impact on Revenue and/or Costs for # 2,3, and 4.(choseincrease profit, increase loss, decrease profit, decrease loss, or no changeand place this answer on line below)

_________Ans. Why?

b. )What impact would adepreciationof the Brazilian Real relative to the U.S.dollarhave on the U.S. company's profit/loss on this transaction? (increase profit, decrease profit, increase loss, decrease loss, or no change on line below)

____________Ans. Why?

c. ) What impact would a depreciation of theBrazilian Realrelative to the Japanese Yen have on the U.S. company's profit/loss?((increase profit, decrease profit, increase loss, decrease loss, or no change on line below)

____________Ans. Why?