pointed out that since the Novo order was denominated in Brazilian real,
the payment from Novo had to converted into U.S. dollars at the current exchange rate.
Given exchange-rate change since the time Baker Adhesives and Novo had agreed on a per-gallon price,
the value of the payment was substantially lower than anticipated.
More disappointing was the fact that Novo was unwilling to consider a change in the per-gallon price for the follow on order. Translated into dollars, therefore, the new order would not be as profitable as the original order had initially appeared.
In fact,
it would not even be as profitable as the original order had turned out to be due to a rise in some of Baker Adhesives' costs!