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

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

Which of the following is least likely to a team solve problems together