Question
Suppose your company imports computer motherboards from Singapore. The exchange rate is 1.4164 Singapore dollars per U.S. dollar. You have just placed an order for
Suppose your company imports computer motherboards from Singapore. The exchange rate is 1.4164 Singapore dollars per U.S. dollar. You have just placed an order for 40,000 motherboards at a cost to you of 209.95 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You will sell the motherboards for $209.99 each. Calculate your profit if (a) the exchange rate does not change, (b) the exchange rate goes up and down by 12% over the next 90 days. What is the break-even exchange rate in American terms rounded to 4 decimal places?
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