Question

a u.s. manufacturer imports steel from japan. the company manufactures the steel into parts and exports them for sale into japan. the yen has recently devalued. all of the following items will decrease, except: qid: 2330429mark for review a revenue b operating expenses c operating profit margin d cost of goods sold

Answer 1

The correct answer is d) cost of goods sold. The devaluation of the yen makes imported goods cheaper for the U.S. manufacturer, resulting in a decrease in the COGS.

Step-by-step explanation:

The correct answer is d) cost of goods sold.

In this scenario, the U.S. manufacturer imports steel from Japan. As the yen has devalued, it means that Japanese goods are now cheaper for the U.S. manufacturer to import and use in their production process. This decrease in cost of imported goods will result in a decrease in the cost of goods sold (COGS) for the U.S. manufacturer.

However, other items such as revenue, operating expenses, and operating profit margin may be affected by the change in exchange rates. For example, a devaluation of the yen can make the U.S. manufacturer's products more expensive in Japan, potentially impacting revenue and operating profit margin negatively.