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Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5123 S$/US$. You have just placed an order for 24,000 motherboards at
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5123 S$/US$. You have just placed an order for 24,000 motherboards at a cost to you of 231.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $160 each. |
a. | Calculate your profit if the exchange rates stay the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | Calculate your profit if the exchange rate rises by 10 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
c. | Calculate your profit if the exchange rate falls by 10 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
d. | What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) |
e. | What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as a positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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