Suppose Your Company Imports Computer Motherboards from Singapore

question 44

Multiple Choice

Suppose your company imports computer motherboards from Singapore.The exchange rate is currently 1.5803S$/US$.You have just placed an order for 30,000 motherboards at a cost to you of 170.90 Singapore dollars each.You will pay for the shipment when it arrives in 120 days.You can sell the motherboards for $148 each.What will your profit be if the exchange rate goes up by 8 percent over the next 120 days?

• A)$913,564
• B)$1,008,121
• C)$1,216,407
• D)$1,435,999
• E)$1,502,400

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Definitions:

Sales Commissions

A compensation method in which sales professionals are paid a percentage of the sales they generate.

Profit-Sharing Plans

A type of incentive plan that gives employees a share in the company’s profits based on its quarterly or annual earnings, promoting a sense of ownership and participation.

Merit-Pay Plans

Pay-for-performance plans where employees receive salary increases or bonuses based on their performance evaluations.

Goal-Sharing Plans

Compensation strategies designed to incentivize employees by sharing financial benefits when specific organizational goals are achieved.