Calculate the amount of profit or loss on the order

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At the time when exchange rates are KES 1.00: TAS 1.50 and KES 1.00: UG 2.30, a Kenyan manufacturer wins an order to supply goods to Tanzania at a price of TAS 2 million, with delivery and payment in three months. To fulfill the order, it is necessary to obtain raw materials from Uganda at a cost of UGS lt5 m with payment in delivery in one month. When the raw materials from Uganda arrived at the enii of a month, the exchange rate has changed to KES 1.001 UGS 2.15 and when the finished goods are 'delivered in Tanzania, the exchange rate has changed to KES 1.00: TAS 1.70. The manufacturer estimates his other Kenyan costs to be KES 0.55 Million,

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Problem 1: Calculate the amount of profit or loss on the order.

Reference no: EM132955381

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