Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 20.1. You
Question:
Suppose your company imports computer motherboards from Singapore. The exchange rate is given in Figure 20.1. You have just placed an order for 30,000 motherboards at a cost to you of 124.60 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $98 each. Calculate your profit if the exchange rate goes up or down by 10 percent over the next 90 days. What is the break-even exchange rate? What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar?
Transcribed Image Text:
Currency USD equiv per US dollar USD equiv Currency per US dollar Americas Americas Argentina peso 0.0251 39.823 Europe Brazil real 0.2649 3.7756 Bulgaria lev 0.57958 1.725 Canada dollar 0.7517 1.3303 Croatia kuna 0.1526 6.554 Chile peso 0.001515 660.2 Czech Rep. koruna 0.04423 22.607 Ecuador US dollar 1 1 Denmark krone 0.1520 6.5799 Mexico peso 0.0518 19.2971 Euro area euro 1.1340 0.8819 Uruguay peso Hungary forint 0.0035917 278.42 0.03059 32.69 Iceland krona 0.008307 120.38 Asia-Pacific Norway krone 0.1157 8.6448 Australian dollar 0.7093 1.4098 Poland zloty 0.2638 3.7915 1-mos forward 0.7058 1.4168 Romania leu 0.2393 4.178 3-mos forward 0.6996 1.4294 Russia ruble 0.01521 65.741 6-mos forward 0.7073 1.4138 Sweden krona 0.1071 9.3371 Switzerland franc 1.0011 0.9989 China yuan 0.1491 6.7071 1-mos forward 1.0042 0.9958 Hong Kong dollar 0.1274 7.8492 3-mos forward 1.0097 0.9904 India rupee 0.0141 70.9 6-mos forward 1.0185 0.9818 Indonesia rupiah 0.0000708 14130 Turkey lira Ukraine hryvnia 0.186 5.3776 Japan yen 0.008949 111.74 0.0373 26.83 1-mos forward 0.009229 111.77 U.K. pound 1.3178 0.7588 3-mos forward 0.009749 111.82 1-mos forward 1.3157 0.7601 6-mos forward 0.009109 111.90 3-mos forward 1.3118 0.7623 Kazakhstan tenge 0.00266 376.22 6-mos forward 1.3058 0.7658 Macau pataca 0.1238099 8.077 Malaysia ringgit 0.2452 4.079 Middle East/Africa New Zealand dollar 0.6824 1.4654 Bahrain dinar 2.6523 0.377 Pakistan rupee 0.00716 139.76 Egypt pound 0.0571 17.522 Philippines peso 0.0193 51.811 Israel shekel 0.2758 3.6252 Singapore dollar 0.7383 1.3545 Kuwait dinar 3.2945 0.3035 Suth Korea won 0.0008877 1126.46 Oman sul rial 2.59737 0.39 Sri Lanka rupee 0.0055624 179.78 Taiwan dollar 0.03243 30.84 Qatar rial 0.2748 3.6387 Thailand baht 0.03139 31.86 Saudia Arabia riyal 0.2666 3.7505 Vietnam dong 0.0000431 23200 South Africa rand 0.0703 14.2209
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
The profit will be the quantity sold times the sales price minus the cost of production T...View the full answer
Answered By
Hemstone Ouma
"Hi there! My name is Hemstone Ouma and I am a computer scientist with a strong background in hands-on experience skills such as programming, sofware development and testing to name just a few. I have a degree in computer science from Dedan Kimathi University of Technology and a Masters degree from the University of Nairobi in Business Education. I have spent the past 6 years working in the field, gaining a wide range of skills and knowledge. In my current role as a programmer, I have had the opportunity to work on a variety of projects and have developed a strong understanding of several programming languages such as python, java, C++, C# and Javascript.
In addition to my professional experience, I also have a passion for teaching and helping others to learn. I have experience as a tutor, both in a formal setting and on a one-on-one basis, and have a proven track record of helping students to succeed. I believe that with the right guidance and support, anyone can learn and excel in computer science.
I am excited to bring my skills and experience to a new opportunity and am always looking for ways to make an impact and grow as a professional. I am confident that my hands-on experience as a computer scientist and tutor make me a strong candidate for any role and I am excited to see where my career will take me next.
5.00+
8+ Reviews
22+ Question Solved
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
A large mail-order company has placed an order for 5,000 thermal-powered fans to sit on wood-burning stoves from a supplier in Canada, with the stipulation that no more than 2% of the units will be...
-
An office manager placed an order for computers, printers, and scanners. Each computer cost $1000, each printer cost $100, and each scanner cost $400. She ordered 15 items for $10,200. Give two...
-
A company produces items at a cost to them of 110E per item. On top of that, there are fixed costs of 700,000E. The expected number of sales is modeled using the function 70,000 - 200p where p Euro...
-
What are the side effects of the drugs that are used for treatment of Multiple Sclerosis attacks? Are cataracts a result of steroid use? Is osteoporosis a complication of Multiple Sclerosis?
-
The data in the next table, compiled by the Center for International Trade Development (CITD), provide a listing of the top 30 U.S. export markets for sparkling wines. Descriptive statistics for the...
-
Cornhusker Company provides the following information at the end of 2021. Required: Prepare the income statement, statement of stockholders? equity, and balance sheet for Cornhusker Company on...
-
The ratio of BP to IP is called (a) mechanical efficiency (b) thermal efficiency (c) volumetric efficiency (d) relative efficiency
-
An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashion Apples uses a labor-intensive approach, and Mech-Apple uses a mechanized...
-
You recently overheard that your company's competitors have started to purchase their materials from an online marketplace. You identify your company's top three products and collect information...
-
In the 2014 Current Population Survey conducted by the U.S. Census Bureau, two average household incomes were reported: $53,657 and $75,738. One of these averages is the mean and the other is the...
-
Suppose the spot and six-month forward rates on the Norwegian krone are Kr 8.53 and Kr 8.61, respectively. The annual risk-free rate in the United States is 3.2 percent, and the annual risk-free rate...
-
The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .39 percent per month. The interest rate in Great Britain is .41 percent per...
-
Access the glossary (Master Glossary) to answer the following. (a) What is a bargain-purchase option? (b) What is the definition of incremental borrowing rate? (c) What is the definition of estimated...
-
What are the values of m and n after executing the following code? int n = 123456789; int m= 0; while (n != 0) { } m (10 m) + (n % 10); n = n/ 10;
-
Write a program that takes an integer command-line argument n and plots an n-by-n checkerboard with red and black squares. Color the lower-left square red.
-
Write a program that takes an integer command-line argument n, reads in n-1 distinct integers between 1 and n, and determines the missing value.
-
Riffle shuffle. Compose a program to rearrange a deck of n cards using the GilbertShannonReeds model of a riffle shuffle. First, generate a random integer r according to a binomial distribution: flip...
-
Write a static method max3() that takes three int arguments and returns the value of the largest one. Add an overloaded function that does the same thing with three double values.
-
Pop Corporation acquired an 80 percent interest in Son Corporation on January 1, 2016, for $640,000, at which time Son had capital stock of $400,000 outstanding and retained earnings of $200,000. The...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
RightPrice Investors, Inc., is considering the purchase of a $415,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line...
-
A firm is considering an investment in a new machine with a price of $15.6 million to replace its existing machine. The current machine has a book value of $5.4 million and a market value of $4.1...
-
Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $750,000. The facility is to be fully depreciated on a straight-line basis over seven years. It is...
-
S&J Catering is a small catering business operating in Western Sydney. Business partners, Jack and Simon, established the business a year ago. To start up the business, the partners contributed...
-
In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee was paid the following amounts from Foster Farms' worker's compensation insurance company: $30,000 for a physical...
-
Briefly describe tax administrative matters including: Tax collection and withholding mechanisms (PAYG withholding, PAYG instalments).
Study smarter with the SolutionInn App