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Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 20,000 units per year at the yuan equivalent of $25,000

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Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 20,000 units per year at the yuan equivalent of $25,000 each. The Chinese yuan (renminbi) has been trading at Yuan7 50/$, but a Hong Kong advisory service predicts the renminbi will drop in value next week to Yuan8.50/5 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. It may either (1) maintain the same yuan price after the Yuan devaluation, and in effect sell for fewer dollars, in which case Chinese volume will not change; or (2) maintain the same dollar price, raise the yuan price in China to offset the devaluation, and experience a 10% drop in unit volume. Direct conts are 75% of the U.S. sales price What will be Manitowoc's gross profits (sales revenue - direct costs) in USD in it follows strategy (1) above? O A $66,176,470.59 B. $112,500,000.00 OC. $47,998.256.40 OD. $60,556,450.98 Slam Cement. Siam Cement, the Bangkok-based cement manufacturer, suffered enormous fosses with the coming of the Asian crisis in 1997. The company had been pursuing a very aggressive growth strategy in the mid-1990s, taking on massive quantities of foreign currency-denominated debt (primarily U.S. dollars). When the That baht (B) was devalued from its pegged rate of 824.4/$ in July 1997, Siam's interest payments alone were over $900 million on its outstanding dollar debt with an average interest rate of 7.55% on its U.S. dollar debt at that time). Assuming Siam Cement took out $53 million in debt in June 1997 at 7.55% Interest, and had to repay it in one year when the spot exchange rate had stabilized at B41.3/5, what was the foreign exchange loss (in Baht) incurred on the transaction? A. B963,325,350 B. 1965,833,310 C. 3900.450.350 D. 3966,998,400

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