Would someone check my work? Please check my calculations and any suggestion would be great.

my work

i needed someone to check my work.

Scenario You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates: On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year. . On April 1, the daily spot rate is 3.52 MYR. Prompt Using the information above, create a short business memo that explains the profitability, viability, and importance of considering foreign exchange on the basis of the scenarios below. Scenario 1: The company uses the spot rate on April 1st to convert its sales revenue in MYR to U.S. dollars. Scenario 2: On January 1st, the company uses that day's forward rate today to lock in a foreign exchange rate for its expected 1.25 million MYR in sales. This means the company agreed to exchange 1.25 million MYR using the forward rate on January 1st when April 1 arrives. Scenario 3: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed. Specifically, you must address the following rubric criteria: Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.. Spend or Save: Discuss what you would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company. 135 Conclusion: After determining the result for each scenario, explain the importance to a company's financial results of considering foreign exchange risk. ( Scenario 1: The spot rate on April 1st is 3.52 MYR, which would mean the exchange rate of one US dollar can buy 3.52 MYR unit of Malaysian ringgit 1/3.52-$0.284/MYR. To find the USD receivable, we will divide the amount receivable in MYR by the exchange rate. Amount receivable in USD - $1,250,000*0.284 = $355,000. Therefore, we will receive $355,000 US dollars. Our breakeven point is $90 per unit, we are obligated to sell 4,000 units. So, we calculate 4,000 * $90= $360,000. This would mean we are making a loss using spot rate on April 1st, $360,000 - $355,000 = -$5,000 this will not be a viable option for our company. Scenario 2: On January 1st, the forward rate today to lock in a foreign exchange rate is 0.317 u MYR. So, one. US dollar equals 0.317 MYR. $1/0.317 = 3.15, now we can calculate 3.15 by amount receivable $1,250,000/3.15 = $396,825. Our breakeven point is $360,000 - $396,825 +$36,825. Which would mean we would generate a profit with a forward rate in January is a significant difference, which is viable for our company. Spend or Save: Another option for our company is to spend the foreign currency and avoid any currency exchange. Under this consideration we would not convert the 1.25 MYR to USD therefore, we would utilize the Malaysia money to purchase raw materials. This could be beneficial to the company, spend less on materials due to the MYR being higher than the USD. The problem is the manufacturing is in the United States. Therefore, raw materials need to be shipped from Malaysia to the United States, plus the taxation and tariffs to imports. Conclusion: In my conclusion I would recommend the company to utilize scenario #2 which the forward rate is 0.317 MYR, $1/0.317-3.15, amount receivable $1,250,000/3.15 = $396,825 with a profit of +$36,825. Scenario #1 provides a spot rate of 0.317 MYR, 1/3.52-$0.284/MYR. Amount receivable in USD $1,250,000*0.284=$355,000 less the cost $360,000, which created a loss of -$5,000. In scenario #3, we are dealt with the uncertainty of potentially higher shipping costs, turnaround time, taxes, and tariffs. Scenario You manage the international business for a manufacturing company. You are responsible for the overall profitability of your business unit. Your company ships your products to Malaysia. The retail stores that buy your products there pay you in their local currency, the Malaysian ringgit (MYR). All sales for the first quarter are paid on April 1st and use the exchange rate at the close of business on April 1st or the first business day after April 1st if it falls on a Saturday or Sunday. The company has sales contracts with different vendors that determine the number of units sold well in advance. The company is contractually obligated to sell 4,000 units for exactly 1.25 million MYR for the first quarter. The break-even point for each unit is $90 in U.S. dollars. Use the following foreign exchange rates: On January 1, the daily spot rate is 3.13 MYR, and the forward rate is 0.317 U.S. dollars/MYR for April 1st of the same year. . On April 1, the daily spot rate is 3.52 MYR. Prompt Using the information above, create a short business memo that explains the profitability, viability, and importance of considering foreign exchange on the basis of the scenarios below. Scenario 1: The company uses the spot rate on April 1st to convert its sales revenue in MYR to U.S. dollars. Scenario 2: On January 1st, the company uses that day's forward rate today to lock in a foreign exchange rate for its expected 1.25 million MYR in sales. This means the company agreed to exchange 1.25 million MYR using the forward rate on January 1st when April 1 arrives. Scenario 3: Another option for the company is to spend the foreign currency and avoid any currency exchange. Because it is a manufacturing company, raw materials are always needed. Specifically, you must address the following rubric criteria: Foreign Exchange Calculations: Determine the profitability of the international business by using foreign exchange calculations for the first and second scenarios.. Spend or Save: Discuss what you would need to consider when determining if the company should buy raw materials with the foreign currency in an effort to avoid foreign exchange risk and whether this is a viable option for the company. 135 Conclusion: After determining the result for each scenario, explain the importance to a company's financial results of considering foreign exchange risk. ( Scenario 1: The spot rate on April 1st is 3.52 MYR, which would mean the exchange rate of one US dollar can buy 3.52 MYR unit of Malaysian ringgit 1/3.52-$0.284/MYR. To find the USD receivable, we will divide the amount receivable in MYR by the exchange rate. Amount receivable in USD - $1,250,000*0.284 = $355,000. Therefore, we will receive $355,000 US dollars. Our breakeven point is $90 per unit, we are obligated to sell 4,000 units. So, we calculate 4,000 * $90= $360,000. This would mean we are making a loss using spot rate on April 1st, $360,000 - $355,000 = -$5,000 this will not be a viable option for our company. Scenario 2: On January 1st, the forward rate today to lock in a foreign exchange rate is 0.317 u MYR. So, one. US dollar equals 0.317 MYR. $1/0.317 = 3.15, now we can calculate 3.15 by amount receivable $1,250,000/3.15 = $396,825. Our breakeven point is $360,000 - $396,825 +$36,825. Which would mean we would generate a profit with a forward rate in January is a significant difference, which is viable for our company. Spend or Save: Another option for our company is to spend the foreign currency and avoid any currency exchange. Under this consideration we would not convert the 1.25 MYR to USD therefore, we would utilize the Malaysia money to purchase raw materials. This could be beneficial to the company, spend less on materials due to the MYR being higher than the USD. The problem is the manufacturing is in the United States. Therefore, raw materials need to be shipped from Malaysia to the United States, plus the taxation and tariffs to imports. Conclusion: In my conclusion I would recommend the company to utilize scenario #2 which the forward rate is 0.317 MYR, $1/0.317-3.15, amount receivable $1,250,000/3.15 = $396,825 with a profit of +$36,825. Scenario #1 provides a spot rate of 0.317 MYR, 1/3.52-$0.284/MYR. Amount receivable in USD $1,250,000*0.284=$355,000 less the cost $360,000, which created a loss of -$5,000. In scenario #3, we are dealt with the uncertainty of potentially higher shipping costs, turnaround time, taxes, and tariffs