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TABLE 1 Exchange rates of select major currencies, relative to the U.S. dollar Direct Indirect Quotations Quotations Note: The pound and euro are quoted as
TABLE 1 | ||||||||
Exchange rates of select major currencies, relative to the U.S. dollar | ||||||||
Direct | Indirect | |||||||
Quotations | Quotations | Note: The pound and euro are quoted as direct quotations. Other currencies are quoted as indirect quotations. | ||||||
British pound | 1.9069 | 0.5244 | ||||||
Mexican peso | 0.0919 | 10.8778 | ||||||
Euro | 1.2841 | 0.7788 | ||||||
Japanese yen | 0.0087 | 115.1145 | ||||||
TABLE 2 | ||||||||
Key Currency Cross-Exchange Rates b | ||||||||
Dollar | Euro | Pound | Peso | Yen | ||||
Japan | 115.11450 | 147.8185 | 219.5118 | 10.5825 | .... | |||
Mexico | 10.87780 | 13.9682 | 20.7429 | .... | 0.0945 | |||
United Kingdom | 0.52440 | 0.6734 | .... | 0.0482 | 0.0046 | |||
Euro | 0.77880 | .... | 1.4850 | 0.0716 | 0.0068 | |||
United States | .... | 1.2841 | 1.9069 | 0.0919 | 0.0087 | |||
a. How much, in dollars, does it cost for Yohe to produce the SY-20? What is the dollar sale price of the SY-20? | ||||||||
Input Data | ||||||||
Cost of component X (in euros | 94 | |||||||
Cost of component Y (in pesos) | 850 | |||||||
Cost of component Z (in pounds) | 110 | |||||||
Sale price of the SY-20 (in yen) | 50,000 | |||||||
We will convert the cost of each component to dollars, and find the total cost of the SY-20. We will do the same to find the | ||||||||
dollar sale price. | ||||||||
Component X | ||||||||
Cost of X in $ | = | Cost in euro | x | Direct spot exchange rate ($/euro) | ||||
Cost of X in $ | = | x | ||||||
Cost of X in $ | = | |||||||
Component Y | ||||||||
Cost of Y in $ | = | Cost in pesos | x | Direct spot exchange rate ($/peso) | ||||
Cost of Y in $ | = | x | ||||||
Cost of Y in $ | = | |||||||
Component Z | ||||||||
Cost of Z in $ | = | Cost in pounds | x | Direct spot exchange rate ($/pound) | ||||
Cost of Z in $ | = | x | ||||||
Cost of Z in $ | = | |||||||
TOTAL COST OF THE SY-20 (in dollars) = | ||||||||
Revenue from sale of the SY-20 | ||||||||
Sale price (in $) | = | Price in yen | x | Direct spot exchange rate ($/yen) | ||||
Sale price (in $) | = | x | ||||||
Sale price (in $) | = | |||||||
SY-20 SALES PRICE (in dollars) = | ||||||||
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