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 over a one-year period, from to . The company is now worried that all of the hydraulic tubing that goes into the systems (making up of their total costs) will be hit by the potential revaluation of the Chinese yuanif some in Washington get their way. How would a 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.)