Assume that you are the manager of a U.S.company and you face an exchange rate of ¥120 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 ¥7,500 and you can collect $65 per item sold to your customer,what would be your profit per item be if you pay the Japanese company ¥7,500?
A) $1.50 per item
B) $1.60 per item
C) $2.50 per item
D) $2.80 per item
Correct Answer:
Verified
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