Suppose your company imports computer motherboards from Singapore. The exchange

Question

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5138 S$/US$. You have just placed an order for 39,000 motherboards at a cost to you of 231.20 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $164 each. (Enter your answer as directed, but do not round intermediate calculations.) Requirement 1: (a) Calculate your profit if the exchange rates stay the same over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).) Profit $ (b) Calculate your profit if the exchange rate rises by 8 percent over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).) Profit $ (c) Calculate your profit if the exchange rate falls by 8 percent over the next 90 days.(Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) Profit $ Requirement 2: What is the break-even exchange rate? (Round your answer to 4 decimal places (e.g., 32.1 616).) Break-even exchange rate S$ is Requirement 3: What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the amount as positive value. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Percentage decrease %

Explanation / Answer

Ans : 1 a Pofit $ 439599

Ans 1 b &1c profit remain same as shipment cost not given we have not considered shipment cost in profit calculation,idealy it should include but in abcence of information we have taken cost of purchase only.

Ans 2: 1.4097S$/USD

Ans : 3    6.87%

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