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A UScompany That Imports Laptop Computers from Japan Knows That in in 30

Question 12

Multiple Choice

A U.S.company that imports laptop computers from Japan knows that in 30 days it must pay yen to a Japanese supplier when a shipment arrives.The company will pay the Japanese supplier ×\times 150,000 for each computer,and the current dollar/yen spot exchange rate is $1 = ×\times 110.The importer knows she can sell the computers the day they arrive for $1,600 each.However,the importer will not have the funds to pay the Japanese supplier until the computers have been sold.Which of the following will happen if the exchange rate after 30 days is $1 = ×\times 90?


A) The importer will earn a profit of $236 per computer.
B) The importer will earn a profit of $67 per computer.
C) The importer will incur a loss of $236 per computer.
D) The importer will incur a loss of $67 per computer.

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