Question

Please answer all parts I submitted 10 times,

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5130 S$/US$. You have just placed an order for 31,000 motherboards at a cost to you of 230.80 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $161 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 11 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 11 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

1.now 1USD = SGD 1.5130, 90 days later also same rate as it dint change

cost of 1 motherboard = SGD 230.80/1.5130 = USD152.54

profit per board = $161 - $152.54 = $8.46

Total profit = 31000 * $8.46 = $262260

2.

now 1USD = SGD 1.5130, 90 days later

1$ =S$ 1.67943 (11% increase)

cost of 1 motherboard = SGD 230.80/1.67943= USD137.43

profit per board = $161 - $137.43 = $23.57

Total profit = 31000 * $23.57 = $730670

3.

now 1USD = SGD 1.5130, 90 days later

1$ =S$ 1.34657 (11% decrease)

cost of 1 motherb1oard = SGD 230.80/1.34657 = USD 171.40

profit per board = $161 - $171.40= ($10.40)

Total LOSS = 31000 * $10.40= $322400

4.

at break even exchange rate (ER) cost equals revenue

$161 = S$230.80 / ER

ER =1USD = S$1.4335

5.

% decrease in SGD versus USD = (1.5130 - 1.4335) / 1.5130

= 5.2545%