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A company purchased merchandise that cost C$155,000 from a Canadian supplier and then resold the merchandise for US$135,000. What rate of exchange must the company have obtained to realize a gross profit of US$44,000 on this transaction?
Suggested Answer: D
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25 comments · newest first
LE
Leslee
9 months ago
Definitely option B, it checks out!
ST
Stefania
10 months ago
Wait, how can they make a profit with that exchange rate?
DA
Dacia
10 months ago
I think it's option B, that rate makes sense!
DO
Dorothy
10 months ago
Surprised they could sell it for that much!
KI
Kimbery
11 months ago
The cost in US$ is about 111,000.
CA
Casie
11 months ago
I vaguely recall that we discussed how to convert currencies and calculate profits, but I can't remember the exact method we used.
CA
Caitlin
11 months ago
I feel like option B could be the right answer, but I’m not completely confident. I need to double-check my calculations.
CA
Carey
11 months ago
I think we need to find the cost in US dollars first and then determine the exchange rate. I hope I remember the steps correctly!
AM
Amalia
12 months ago
I remember we practiced a similar question about calculating exchange rates and gross profit, but I'm not sure if I got the formula right this time.
JU
Judy
12 months ago
This is tricky, but I think if I break it down step-by-step, I can figure it out. Let me start by converting the Canadian dollars to US dollars using the exchange rate.
TO
Tonette
12 months ago
Okay, I think I've got this. I just need to set up an equation using the given information and then solve for the exchange rate. I've got this!
AS
Ashanti
1 year ago
Hmm, I'm a bit confused on how to approach this. Do I need to convert the Canadian dollars to US dollars first, or can I work with the given amounts?
KR
Krissy
1 year ago
This looks like a straightforward currency exchange problem. I'll need to set up an equation to solve for the exchange rate.
ER
Erinn
1 year ago
The question says the company realized a gross profit of US$44,000, so the answer must be B) 1.1500 US$/C$. Simple math, really.
TA
Tarra
1 year ago
Hmm, this question requires some careful calculation. Let me think this through... Ah, got it! The answer is B) 1.1500 US$/C$.
BA
Barrett
9 months ago
Good job, everyone! We nailed it!
JU
Judy
9 months ago
I calculated it and got the same answer!
GE
Gerri
10 months ago
Yeah, the profit margin is key here.
NE
Nenita
10 months ago
I think it’s B too! Makes sense.
EL
Elvera
1 year ago
I'm not sure, but I think the correct answer is B) 1.1500 US$/C$
SH
Shantay
1 year ago
I think the answer is B) 1.1500 US$/C$. The company purchased merchandise for C$155,000 and resold it for US$135,000, so the exchange rate must be 1.1500 US$/C$ to realize a gross profit of US$44,000.
TY
Ty
1 year ago
Yes, the company must have obtained an exchange rate of 1.1500 US$/C$ to realize a gross profit of US$44,000.
TI
Tiara
1 year ago
I agree, the answer is B) 1.1500 US$/C$.
PH
Phuong
1 year ago
I disagree, I believe the answer is D) 1.7033 C$/US$
BL
Blondell
1 year ago
I think the answer is A) 0.3259 US$/C$