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Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually must buy
Yohe Telecommunications is a multinational corporation that produces and distributes telecommunications technology. Although its corporate headquarters are located in Maitland, Florida, Yohe usually must buy its raw materials in several different foreign countries, and several different foreign currencies. The matter is complicated even further by the fact that Yohe usually sells its products in other different foreign countries. One product in particular, the SY-20 radio transmitter draws its principal components Component X, Component Y, and Component Z from Germany, Mexico, and England, respectively. Specifically, Component X costs 84 euros, Component Y costs 650 Mexican pesos, and Component Z costs 105 British pounds. The largest market for the SY-20 is in Japan, where it sells for 38,000 Japanese yen. Naturally, Yohe is intimately concerned with economic conditions that could adversely affect dollar exchange rates. You will find Tables 17-1, 17-2, and 17-3 useful for this problem. Exchange rates of select major currencies, relative to the U.S. dollar Key Currency Cross-Exchange Rates 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? 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
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