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.)
Requirement 1:
(a) 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).)
Profit $
(b) 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).)
Profit $
(c) 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).)
Profit $
Requirement 2:
What is the break-even exchange rate? (Round your answer to 4 decimal places (e.g., 32.1616).)
Break-even exchange rate S$ /$
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 %