Business, 06.06.2020 16:58 ngmasuku3115

Motor Company manufactures some of their models in Japan and exports them to their U. S. subsidiary, American Honda. One such imported vehicle costs 1,772,000 JPY (Japanese Yen). American Honda purchases these vehicles from the parent company in JPY, then sells them to dealers in the United States priced in USD, at prices that remain stable over the course of a model year. American Honda is concerned about fluctuations in the JPY cost of the vehicles they purchase from their Japanese parent company, because rising JPY prices could reduce their USD profit margin. The spot rate of the JPY against the USD is currently 111.06 JPY per USD. What is the cost of the imported vehicle in USD? a. $17,999.99
b. $16,222.99
c. $15,955.34
d. $15,001.89

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Motor Company manufactures some of their models in Japan and exports them to their U. S. subsidiary,...

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