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Chinese Sourcing and the Yuan. Harrison Equipment of Denver, Colorado purchases all of its hydraulic tubing from manufacturers in mainland China. The company has recently

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Chinese Sourcing and the Yuan. Harrison Equipment of Denver, Colorado purchases all of its hydraulic tubing from manufacturers in mainland China. The company has recently completed a corporate-wide initiative in six sigma/lean manufacturing Completed oil field hydraulic system costs were reduced 4.3% over a one-year period, from $879,000 to $841,203. The company is now worried that all of the hydraulic tubing that goes into the systems (making up 20% of their total costs) will be hit by the potential revaluation of the Chinese yuan-If some in Washington get their way. How would a 11 8% revaluation of the yuan against the dollar impact total system costs? The current cost of the hydraulic tubing is $ (Round to the nearest cent.) After a revaluation of the yuan against the dollar, the cost of the hydraulic tubing will be $ (Round to the nearest cent.) The cost increase (impact in total system costs) as a result of the revaluation is (Round to the nearest cent) "T

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