1. Based on the 500-case order, what are MMS's cost per unit (case of 24) to produce the exported syrup (in both CAD and JPY)? Please show your calculations. 10 points.
2. Produce a simple income statement (in CAD) for MMS if they only sell the initial order and then cease exports to Japan. 10 points.
3. Produce a simple Income statement (In CAD) for MMS If they export 45,000,000 JPY of syrup to Japan in the first year. 10 points
4. Produce a simple income statement (in CAD) for MMS if they export 75,000,000 JPY of syrup to Japan in year 2. 10 points
5. MMS's revenue will be in Japanese Yen while their expenses are in Canadian Dollars. Discuss the Currency Risk for MMS. What happens It the value of the Yen Increases verses the Canadian dollar? What happens if the value of the Yen decreases? How could the company mitigate the risk? 10 points.
6. How do you feel about the buyer wanting 60-day terms? Is this reasonable? Is it too much risk? If you were to negotiate payment terms, what terms would you counteroffer? Explain your rational. 5 points.
7. Montreal Maple Syrup may want the incoterm used to be Free on Board (FOB) Port of Montreal, In MMs case where does the ownership and risk. transfer from the seller to the buyer? What are the advantages/disadvantages for MSS 5 points.