Suppose degraw corporation, a u. s. exporter, sold a solar heating station to a japanese customer at a price of 143.5 million yen, when the exchange rate was 140 yen per dollar.
in order to close the sale, degraw agreed to make the bill payable in yen, thus agreeing to take some exchange rate risk for the transaction. the terms were net 6 months.

if the yen fell against the dollar such that one dollar would buy 154.4 yen when the invoice was paid, what dollar amount would degraw actually receive after it exchanged yen for u. s. dollars?

a. $1,075,958
b. $1,025,000
c. $1,000,000
d. $975,610
e. $929,404

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.