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3b. Chinese Sourcing and the Yuan. Harrison Equipment of Denver, Colorado,...

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Finance

3b.
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Chinese Sourcing and the Yuan. Harrison Equipment of Denver, Colorado, purchases all of its trydraulic tubing from manufacturess in mainland China. The company has recently completed a comprate wide in2liative in six sigma/oan manulacturing. Completed oil field hydraulic system costs were reduced \3.6 over a one-year period, from \\( \\$ 887 \\), 000 to \\( \\$ \\$ 55,068 \\). The corrpany is now woried that all of the hydraulic tubing that goes into the systeras (making up \20 of their total costs) will be hit by the potential revaluation of the Chinese yuan- - I some in Washington got theit way How would a \125 revaluation of the yuan against the dotlar impact total system costs? The current cost of the hydraulic tubing is \\( \\mathbf{5} \\) (Round to the nearest cent)

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