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Manitowac Crane is a US company that exports heavy crane equipment to several Chinese dock facilities. Sales are currently 150 units per year at the
Manitowac Crane is a US company that exports heavy crane equipment to several Chinese dock facilities. Sales are currently 150 units per year at the yuan equivalent of $24,000 each. The yuan currently trades at 6.35 yuan per dollar, but you predict it will fall to 7 yuan per dollar soon and stay there the entire year. Assume direct unit costs are 75% of the original US sales price in either scenario. Calculate gross profits in dollars if you maintain the yuan price (and thus volume).
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