Question

0.00 points Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 12913 SS/US$. You have just placed an order for 23,000 motherboards at a cost to you of 239.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $200 each What is your profit at the current exchange rate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Profit at the current exchange rate 334141.89 What is your profit if the exchange rate goes up by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Profit if the exchange rate up by 10% $ 721948.99 What is your profit if the exchange rate goes down by 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) Profit if the exchange rate down by 10% What is the break-even exchange rate? (Round your answer to 4 decimal places, e.g., 32.1616.) Break-even exchange rate 1.1975 15 What percentage rise or fall does this represent in terms of the Singapore dollar versus the US dollar? (Input the value as a positive number. Enter your answer as a percent rounded to 2 decimal places, e... 32.16.) Percentage change 726% Fall Dator Type here to search

Answer 1

Current Exchange Rate = 1.2913

Total Quantity = 23000

Cost per unit Singapore $ 239.5

Sales Price per unit US $ 200

If we convert cost in US = 239.5 / 1.2913 = US $ 185.472

Profit per unit = $200 -$185.472 = 14.528

Total Profit = 14.528 * 23000 = 334144.00

Exchange rate doing up means Singapore dollar is getting depreciated in comparison to US$ so the new exchange rate would be 1.2913 * 1.1 = 1.42043

Now again convert cost in US = 239.5 / 1.42043 = US $ 168.6109

Profit per unit = $200 -$168.6109 = 31.3891

Total Profit = 31.3891* 23000 = 721949.30

Exchange rate doing down means Singapore dollar is getting appreciated in comparison to US$ so the new exchange rate would be 1.2913 * 0.90 = 1.16217

Now again convert cost in US = 239.5 /1.16217 = US $ 206.08

Profit per unit = $200 -$206.08= $ - 6.08

Total Profit = $-6.08* 23000 = -139840.00 this is loss (139840.00) or - 139840.00

Break Even Exchange where there is NPNL

= 239.5 (Cost in Singapore) / 200 (Sales in US$) = 1.1975

at 1.1975 my cost is equals to sales price after conversion so I will be at BEP

% rise or fall

New Rate 1.1975 Original Rate 1.2913

Change = New Rate / Old Rate = 1.1975 / 1.2913 = 0.92736

1 - 0.92736 = 0.0726 = 7.26% fall