Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.2855 S$/US$. You have just placed an order for 24,000 motherboards at a cost to you of 231.00 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $194 each.
a) what is your profit at the current exchange rate?
b) what isyour profit if the exchange rate goes up by 10 percent?
c) what is your profit if the exchange rate goes down by 10 percent?
d) what is the break-even exchange rate?
e) what percentage rise or fall does this represent in termsof the Singapore dollar versus the U.S.dollar?