Respuesta :
Answer:
Profit at the current exchange rate is $414,362.50 .
Profit if the exchange rate goes up by 10 percent is $831,238.63 .
(Loss) if the exchange rate goes down by 10 percent is ($95,152.79).
Percentage rise appreciates by 12.84% and percentage fall depreciates by 12.84% in terms of the Singapore dollar versus the U.S. dollar
Explanation:
Exchange Rate = 1.2839 S$/US$
Total Order = 25,000 motherboards
Cost Price = S$235.50 /motherboard
Sale Price = $200 /motherboard
(1) At Current Exchange the profit can be calculated as follows;
Cost Price per unit in US$ = S$235.50 / 1.2839 S$/US$
Cost Price per unit in US$ = $183.43
Profit per unit in US$ = Sale Price per unit - Cost Price per unit
Profit per unit in US$ = $200 - $183.43
Profit per unit in US$ = $16.57
Total Profit = Profit per unit in US$ x Total Order
Total Profit = $16.57 x 25,000
Total Profit = $414,362.50
(2) If the exchange rate goes up by 10%, the new exchange rate can be calculated as follows;
Up Exchange Rate = 1.2839 S$/US$ x (1 + 10%)
Up Exchange Rate = 1.2839 S$/US$ x (1 + 0.10)
Up Exchange Rate = 1.2839 S$/US$ x (1.10)
Up Exchange Rate = 1.41229 S$/US$
Cost Price per unit in US$ = S$235.50 / 1.41229 S$/US$
Cost Price per unit in US$ = $166.75
Profit per unit in US$ = Sale Price per unit - Cost Price per unit
Profit per unit in US$ = $200 - 166.75
Profit per unit in US$ = $33.25
Total Profit = Profit per unit in US$ x Total Order
Total Profit = $33.25 x 25,000
Total Profit = $831,238.63
(3) If the exchange rate goes down by 10%, the new exchange rate can be calculated as follows;
Down Exchange Rate = 1.2839 S$/US$ x (1 - 10%)
Down Exchange Rate = 1.2839 S$/US$ x (1 - 0.10)
Down Exchange Rate = 1.2839 S$/US$ x (0.90)
Down Exchange Rate = 1.15551 S$/US$
Cost Price per unit in US$ = S$235.50 / 1.15551 S$/US$
Cost Price per unit in US$ = $203.81
Profit/(Loss) per unit in US$ = Sale Price per unit - Cost Price per unit
Profit/(Loss) per unit in US$ = $200 - 203.81
Profit/(Loss) per unit in US$ = ($3.81)
Total Profit/(Loss) = Profit/(Loss) per unit in US$ x Total Order
Total Profit/(Loss) = ($3.81) x 25,000
Total Profit/(Loss) = ($95,152.79)
(4) The percentage rise or fall is the rate at which the value of currency is appreciated or (depreciated) over some period of time.
Old Exchange Rate = 1.2839 S$/US
New Exchange Rate = 1.41229 S$/US$
as calculated above when there was a rise in exchange rate of 10%, can be calculated as follows;
(New Exchange Rate - Old Exchange Rate) x 100%
(1.41229 - 1.2839) x 100%
(0.12839) x 100%
+12.84%
As calculated above is the positive value of US$, in terms of S$, it means that US$ is appreciated by 12.84% with respect to S$, when there is rise in exchange rate by 10%
Old Exchange Rate = 1.2839 S$/US
New Exchange Rate = 1.15551 S$/US$
as calculated above when there was a fall in exchange rate of 10%, can be calculated as follows;
(New Exchange Rate - Old Exchange Rate) x 100%
(1.15551 - 1.2839) x 100%
(-0.12839) x 100%
-12.84%
As calculated above is the negative value of US$, in terms of S$, it means that US$ is depreciated by 12.84% with respect to S$, when there is fall in exchange rate of 10%.
