Suppose your company imports computer motherboards from Singapore. The exchange

Question

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2541 S$/US$. You have just placed an order for 30,000 motherboards at a cost to you of 185.50 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $160 each. (Enter your answer as directed, but do not round intermediate calculations.)

Calculate your profit if the exchange rate stays the same over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).)

Calculate your profit if the exchange rate rises by 10 percent over the next 90 days.(Round your answer to 2 decimal places (e.g., 32.16).)

Calculate your profit if the exchange rate falls by 10 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).)

What is the break-even exchange rate? (Round your answer to 4 decimal places (e.g., 32.1616).)

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).)

Requirement 1:

Explanation / Answer

At Break even point cost in USD is $160.

Hence Break even conversion rate is 1.159375

% decrease is 7.55%

A B C Conversion rate 1.2541 1.37951 1.12869 Singapore $ USD USD USD Cost per unit 185.5 $             147.91 $                 134.47 $              164.35 Revenue per unit $             160.00 $                 160.00 $              160.00 Total Cost $ 4,437,445.18 $     4,034,041.07 $ 4,930,494.64 Total Revenue $ 4,800,000.00 $     4,800,000.00 $ 4,800,000.00 Profit $     362,554.82 $         765,958.93 $   (130,494.64)

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