Currency Exchange

Chinook, Inc., purchases components from a Japanese company that requires payment in yen (); it sells finished product to a German company that pays in euros. On June 1, Chinook ordered components from the Japanese company costing 6,890,000 and sold finished goods to the German company with a selling price of $150,000 to be paid in euros. The June 1 spot rates of U.S. dollars for yen and for euros was:

$1 = 106.0 $1 = 0.84

Required:

1. What is the cost of the 6,890,000 in dollars? $fill in the blank 1

2. How many euros will Chinook receive from the German company in payment for the finished product? fill in the blank 2

3. What if the exchange rate of dollars for yen was $1 = 108? What is the cost of the 6,890,000 in dollars (rounded to the nearest dollar)? $fill in the blank 3