PLEASE FILL OUT TWO MISSING FIELDS (break - even and % change) Suppose your comp

Question

PLEASE FILL OUT TWO MISSING FIELDS (break - even and % change)

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2875 S$IUS$. You have just placed an order for 28,000 motherboards at a cost to you of 234.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $195 each. What is your profit at the current exchange rate? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Profit at the current exchange rate $ 371,06796j What is your profit if the exchange rate goes up by 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Profit if the exchange rate up by 10% $ 833,698.15 What is your profit if the exchange rate goes down by 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. Negative amounts should be indicated by a minus sign.) Profit if the exchange rate down by 10% $1-194,368.931 What is the break-even exchange rate? (Round your answer to 4 decimal places. (e.g., 32.1616)) Break-even exchange rate S$ 1$ What percentage rise or fall does this represent in terms of the Singapore dollar versus the U.S. dollar? (Input the value as positive numbers.) Percentage change % Fall

Explanation / Answer

Sale of Mother board = 28000*$195 = $5460000

Purchase amount should be these to breakeven

Purchase in singapore $ = 28000*234 = 6552000 Singapore dollars

Therefore, Break even exchange rate = 6552000/5460000 = S$1.2/$

Previously for 1$ we got 1.2875 Singapore dollar but now for 1$ we get 1.2S$ Singapore dollar became stronger than US $ which represent rise of Singapore dollar versus US dollar

Percentage change = [(S$1.2875- S$1.2)/S$1.2875]*100 = 6.796% rise

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