Problem:
Suppose your company imports computer motherboards from Singapore. The exchange rate is S$1.2348/US$. You have just placed an order for 34,000 motherboards at a cost to you of 142.9 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $125 each.
Required:
Question 1: What is your profit at the current exchange rate?
Question 2: What will your profit be if the exchange rate goes up by 10 percent?
Question 3: What will your profit be if the exchange rate goes down by 10 percent?
Question 4: What is the percentage change in the exchange rate that would result in a break-even profit?
Note: Please show basic calculation