3
4
5
6
7
8
9
10
11
12
13
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Indirect Quote Currencies:
Mexico MXN Mexican peso ($) 0.0529 18.8955
South Korea KRW South Korea won (₩) 0.0009 1,131.1600
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
United Kingdom 0.7651 0.8906 …. 0.5810 0.0068 0.0405 0.7659
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
We will convert the cost of each component to dollars, and find the total cost of the SY-20. We will do the same to find the
dollar sale price.
Problem: 15
You will find Tables 17-1 and 17-2 useful for this problem and are shown in following rows.
TABLE 17-1
Exchange rates of select major currencies, relative to the U.S. dollar
Note: only blue cells need to be updated with current quotes.
Direct Quote Currencies:
Euro area EUR Euro (€) 1.1641 0.8590
U.K. GPB U.K. (British) pound (£) 1.3071 0.7651
Key Currency Cross-Exchange Rates
Note: these do not need to be updated because they are derived from the quotes in preceding table and are not rounded.
U.S. Dollar Euro U.K. Pound CdnDlr Yen Peso SFranc
United States …. 1.1641 1.3071 0.7594 0.0089 0.0529 1.0011
Euro 0.8590 …. 1.1228 0.6524 0.0076 0.0455 0.8600
Input Data
Cost of rosewood and mahogany (pesos) 2,750
Cost of spruce (CdnDlr) 200
Cost of ebony and electronics (yen) ¥12,400
Cost of parts and labor (U.S. dollars) $600
Sale price of the MC-28 (pounds) £1,600
ISO Currency
Code
(1)
Direct Quote:
U.S. Dollars
Required to Buy
a Unit of Foreign
Currency
(3)
Indirect Quote:
Number of Foreign
Currency Units
Required to buy a
U.S. Dollar
(4)
Currency Name
(2)
Mark Collins, luthier and businessman, builds and sells custom-made acoustic and electric stringed instruments. Although located in Maryville, Tennessee,
he purchases raw materials from around the globe. For example, his top-of-the line acoustic guitar with onboard electronics, the MC-28, is constructed from
rosewood and mahogany imported from a distributer in Mexico, spruce harvested in and imported from Canada, and ebony and the electronics imported
from a Japanese distributer. Other parts are obtained in the U.S. When broken down on a per-guitar basis, the component and finishing costs are as
follows:
a. How much, in dollars, does it cost for Mark Collins to produce his MC-28? What is the dollar sale price of the MC-28 sold in England?
materials costs and profit.
Note: The pound and euro are quoted as direct quotations. Other currencies are quoted as indirect quotations. Blue denotes the actual quotes, which are
reported out to digits to the right of the decimal; orange is the inverse of the provided quote and is not rounded.
Country