What impact would a depreciation of japanese yen relative

Assignment Help Managerial Accounting

Reference no: EM132794108

After lengthy negotiations a U.S. company has made a deal to sell 100,00 units of a streaming device to an large electronics retailer in Brazil. The Brazilian company is paying 12$ for each unit and will pay in US dollars to the US seller. The U.S. company does not manufacture or assemble the streaming devices but purchases them from a Japanese manufacturer. To make the deal happen, the U.S. company agrees to pay in Japanese Yen. The price for each unit is 1000Yen. The U.S. company estimates its marginal (additional cost per unit) costs ( for warehousing, insurance, transportation, and so on) as an additional .25 per streaming unit.

Exchange rates at the time of signing the agreements are as follows:

USD$ 1 = 125 YEN

USD$ 1 = Brazilian Real .57

Problem a) What impact would a depreciation of the Japanese Yen relative to the U.S. dollar have on the U.S. company's profits/loss on this transaction?

Reference no: EM132794108

Questions Cloud

How much will retirement investments be worth : A mid-career business manager has $400,000 $1,000 a month. How much will his retirement investments be worth at the end of 25 years?

Justify the need for a domestic violence awareness project : First, your proposal should identify the community you are targeting. One way to find a community is to use information gathered from the 2010 Census.

Find how much will have at the end of the three years : You are saving for a new house and you put $10m000 per year in an account paying 8%. The payment is made today. How much will you have at the end of the 3 years

What is the best logo you have seen in the market so far : What is the best logo you have seen in the market so far? Name film(s) that may qualify as fine art. Explain your reason(s). What is the best film title design.

What impact would a depreciation of japanese yen relative : What impact would a depreciation of the Japanese Yen relative to the U.S. dollar have on the U.S. company's profits/loss on this transaction?

How are women depicted in popular culture today : How are women depicted in popular culture today? The expression "sex sells" can readily be validated by looking in virtually any magazine, those geared.

How the city changed since it was first created : How the City changed since it was first created. Describe the changes over time up to the present day. Note: Insert Citations at the final slide

Analyze the monograph required in the course : Your purpose is to read and analyze the monograph required in the course. This monograph is Coming of Age in Mississippi by Anne Moody.

What level should the company operate : Assuming that PRIDE, Inc. is able to sell of its production at $3.00 above variable cost, at what level should the company operate?

User Account

All Pages