Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 10,000 units per year at the yuan equivalent of $24,000 each. Direct costs are 77% of the U.S. sales price. The Chinese yuan (renminbi) has been trading at Yuan8.20/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan9.1/$, after which it will remain unchanged for at least a decade. Accepting this forecast as given, Manitowoc Crane faces a pricing decision in the face of the impending devaluation.

(1) maintain the same yuan price and in effect sell for fewer dollars, in which case Chinese volume will not change.

(2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 12.4% drop in unit volume.

Given this information what would the gross annual profit for the project be if the Yuan Price were held steady?

NOTE: ANSWER WITH TWO DECIMALS PLACES