What is the break-even exchange rate in american

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Reference no: EM132004621

Suppose your company imports computer motherboards from Singapore. The exchange rate is 1.4164 Singapore dollars per U.S. dollar. You have just placed an order for 40,000 motherboards at a cost to you of 209.95 Singapore dollars each.

You will pay for the shipment when it arrives in 90 days.

You will sell the motherboards for $209.99 each.

Calculate your profit if (a) the exchange rate does not change, (b) the exchange rate goes up and down by 12% over the next 90 days.

What is the break-even exchange rate in American terms rounded to 4 decimal places?

Reference no: EM132004621

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