Question
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5138 S$/US$. You have just placed an order for 39,000 motherboards at
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5138 S$/US$. You have just placed an order for 39,000 motherboards at a cost to you of 231.20 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $164 each. (Enter your answer as directed, but do not round intermediate calculations.) |
Requirement 1: |
(a) | Calculate your profit if the exchange rates stay the same over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).) |
Profit | $ |
(b) | Calculate your profit if the exchange rate rises by 8 percent over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).) |
Profit | $ |
(c) | Calculate your profit if the exchange rate falls by 8 percent over the next 90 days.(Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) |
Profit | $ |
Requirement 2: |
What is the break-even exchange rate? (Round your answer to 4 decimal places (e.g., 32.1616).) |
Break-even exchange rate | S$ /$ |
Requirement 3: |
What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar?(Input the amount as positive value. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Percentage decrease | % |
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