The Furniture Mart, Inc. has current fixed costs of $1 million. Their only product is an extension desk which sells for $3,000. Variable operating costs per unit are $1,000. Furniture Mart plans to buy a new planer that will produce a more precise desktop for the extension desks. The planer will add $100,000 in annual fixed costs. Variable operating costs are not expected to change as a result of the purchase.

They are considering selling their desks in a new market overseas. Should they decide to sell their desks in England and Japan, using the principle of parity, what price should Furniture Mart sell their desks for in and if the current exchange rates are $1.2492584/1 and $.0072749/1 respectively?