An importer wants to purchase $N$ high quality cameras from Germany and sell them in Japan. The cost in Germany of

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BTGmoderatorLU: Moderator; Posts: 2554; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Sat May 06, 2023 12:42 pm

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Source: Magoosh

An importer wants to purchase $N$ high quality cameras from Germany and sell them in Japan. The cost in Germany of each camera is $E$ euros. He will sell them in Japan at $Y$ yen, which will bring in a profit, given that the exchange rate is $C$ yen per euro. Given the exchange rate of $D$ US Dollars per euro, which of the following represents his profit in dollars?

A. $N(YC - DE)$

B. $ND(YC - E)$

C. $ND[(Y/C) - E]$

D. $N[(Y/C) - DE]$

E. $ND(Y - E)/C$

The OA is C

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Source: Beat The GMAT — Problem Solving | Sat May 06, 2023 12:42 pm

swerve: Legendary Member; Posts: 2545; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

Re: An importer wants to purchase $N$ high quality cameras from Germany and sell them in Japan. The cost in Germany of

by swerve » Sun May 07, 2023 3:23 pm

BTGmoderatorLU wrote: ↑
Sat May 06, 2023 12:42 pm
Source: Magoosh

An importer wants to purchase $N$ high quality cameras from Germany and sell them in Japan. The cost in Germany of each camera is $E$ euros. He will sell them in Japan at $Y$ yen, which will bring in a profit, given that the exchange rate is $C$ yen per euro. Given the exchange rate of $D$ US Dollars per euro, which of the following represents his profit in dollars?

A. $N(YC - DE)$

B. $ND(YC - E)$

C. $ND[(Y/C) - E]$

D. $N[(Y/C) - DE]$

E. $ND(Y - E)/C$

The OA is C

Cost per Camera $= E (\text{euros})$

Selling Price per Camera $= Y (\text{yen}) \cdot \left[\dfrac{1 (\text{euro})}{C (\text{yen})}\right] = \dfrac{Y}{C} (\text{euro})$

Profit in Euros $=$ (Selling Price per Camera) $\cdot N$ Cameras $-$ (Cost per Camera) $\cdot N$ Cameras

Profit in Euros $= \left(\dfrac{Y}{C}\right) \cdot N - (E) \cdot N$

----take $N$ as Common-----

Profit in Euros $= N \cdot \left[\dfrac{Y}{C} - E \right]$

Lastly, need to convert to Dollars: $\dfrac{D (\text{dollars})}{1 (\text{euro})}$

$N \cdot \left[ \dfrac{Y}{C} - E \right] (\text{euros}) \cdot \left[ \dfrac{D (\$)}{1 (\text{euro})} \right] =$

$N \cdot D \cdot \left[ \left(\dfrac{Y}{C}\right) - E \right]$ Dollars Profit

Therefore, C

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