Question: Note: Write down the steps and results of each step of the calculation process. (a) ABC is considering expanding its sales of orange juice overseas.

Note: Write down the steps and results of each step of the calculation process.

(a) ABC is considering expanding its sales of orange juice overseas. If the product is produced in ABCs Australian brunch with cost 2.10 Australian dollars, ship to UK, where it can be sold for 1.52 British pound. What is the profit measured by US dollars on the sale?

On 11/23/2020, the exchange rates are as follows:

1 British Pound = USD $1.33

1 Australian dollar = 0.55 British Pound

$1 USD = 1.37 Australian dollar

$1 USD = 104.33 Japanese Yen

(b) If ABC produces a liter of orange juice in its US headquarters and ship it to Japan for USD $1.55 per unit. If the firm wants a 30% markup on the project, what should be the price of the juice sold in Japan measured by Yen, if using the exchange rate as shown above?

(c) If the shipped orange juice in Japan is actually sold for 215 Yen, by PPP, what is the exchange rate between USD and Yen (Yen/USD $1) implied?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Write down the steps and results of each step of the calculation process. 1. ABC Inc.'s capital structure is 40% debt, 30% preferred, and 30% common equity, and its tax rate is 35%. For financing,...

write down the steps and calculations On 4/10/2022, the exchange rates are as follows: 1 British Pound - USD $1.30 1 Australian dollar = 0.57 British Pound 1 Australian dollar - 87.59 Japanese Yen $1...

(1) Write an equation (using the actual numbers on the income statement) that shows how operating income is computed by the Coca Cola Co. (2) What item(s) are included as part of other...

Lecture Notes DL MGT 5100 - Distribution Management Spring 2017 1.0. Day one, Monday, Monday, 9 Jan 17 1.1. Reading Assignments: Chapters 1 and 2 1.1.1. I intend to follow the book so as to provide a...

Chap 12 case CArITAL BUDGETING AND CASH FLOW ESTIMATION Allied Food Products is considering expanding into the fruit juice bustness with a new fresh lemon juice product. Assume that you were recently...

Watts and Ross find themselves constantly trying to make up for missing ingredients. No Scheduling or inventory system is perfect, so allowances must always be made to accommodate things that might...

1-l need long introduction about (RW CITRUS & JUICE: INTERIM GENERAL MANAGER) case study. 2_I need long answer for this question in the same case (3. What is the bare minimum that needs to be in...

The Hunky Dory Boat Company buys boats from an independent contractor, customize them in an operation that requires only a couple of days, then either sells them directly or puts them into inventory....

What is reasons for working capital? Why do we need working capital? Give example

Question 4 1 Which of the following indicates a significant problem in an infant's communication system? Only speaking 1 5 0 words by 2 years of age A bick of pointing by 1 5 monthe of ape A lack of...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

2. Delineate seven ways that cultural variables affect communication

3. Shake up your clothing and artifacts today. Wear something completely out of character for you, and consider how people react. If you normally dress very casually, try wearing a suit, or if youre...

2. Record a new episode of your favorite scripted television show. Try watching it with the sound turned all the way down (and closed captions turned off ). Can you guess whats going on in terms of...