Question

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5119 S$/US$. You have just placed an order for 20,000 motherboards at a cost to you of 231.70 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $164 each.

Calculate your profit if the exchange rates stay the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Profit            $  

Calculate your profit if the exchange rate rises by 8 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Profit            $

Calculate your profit if the exchange rate falls by 8 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Profit            $

What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Break-even exchange rate            S$  /$

What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as a positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Percentage decrease             %

Answer 1