U.S. Dollar per Brazillan Real Date November 1, 2017 December 31, 2017 February 1, 2018 $0.40 0.38 0.41
Use the following information for Problems 21 and 22.
On November 1, 2017, Dos Santos Company
What is the net impact on Dos Santos Company’s 2018 net income as a result of this hedge of a forecasted foreign currency transaction? Assume that the raw materials are consumed and become a part of the cost of goods sold in 2018.
a. $80,000 decrease in net income.
b. $80,600 decrease in net income.
c. $81,100 decrease in net income.
d. $83,100 decrease in net income.
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