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
An importer wants to purchase \(N\) high quality cameras from Germany and sell them in Japan. The cost in Germany of
This topic has expert replies
-
- Moderator
- Posts: 2205
- Joined: Sun Oct 15, 2017 1:50 pm
- Followed by:6 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
Cost per Camera \(= E (\text{euros})\)BTGmoderatorLU wrote: ↑Sat May 06, 2023 12:42 pmSource: 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
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