Assume that you are the manager of a U.S.company and you face an exchange rate of ¥110 per $1.Whenever you receive an order,rather than ship from your production facilities,you call in the order to a Japanese company and have the bill shipped to you directly.If the bill shipped to you is ¥9,500 and you can collect $85 per item sold to your customer,what would be your loss per item if you pay the Japanese company ¥9,500?

Question

Quizplus · Accepted Answer

First, we need to calculate the cost of ¥9,500 in dollars:
¥9,500 / ¥110 per $1 = $86.36

Next, we need to calculate our revenue per item:
$85 per item

Finally, we can calculate our loss per item:
$85 - $86.36 = -$1.36 per item

Therefore, the best choice is A, as it represents the loss per item of paying the Japanese company ¥9,500.

Assume That You Are the Manager of a U