Question
An American factory needs to buy special tools which are made only by companies in either Switzerland or Britain. The tools made in Switzerland cost 100 francs apiece; the ones made in Britain cost 100 pounds each. Based on the exchange rates below, what should the factory do?
U.S. Dollar Comparison
$1.00 U.S. = 0.80 Swiss Francs
$1.00 U.S. = 0.67 Pounds
A) Buy the tools from Britain.
B) Make the tools themselves.
C) Wait until the exchange rate gets better. *
D) Buy the tools from Switzerland.
U.S. Dollar Comparison
$1.00 U.S. = 0.80 Swiss Francs
$1.00 U.S. = 0.67 Pounds
A) Buy the tools from Britain.
B) Make the tools themselves.
C) Wait until the exchange rate gets better. *
D) Buy the tools from Switzerland.
Answers
Anonymous JAK
if that isn't right someone please help me find the answer instead of saying "incorrect" thank you.
Ms. Sue
You could wait a long time before you could get a better exchange rate.
100 * 0.8 = $80 each
100 * 0.67 = $67 each
100 * 0.8 = $80 each
100 * 0.67 = $67 each
Anonymous JAK
Okay, so the answer is A then? I did that math but didn't pick A because I thought "it couldn't be that simple" :P
Ms. Sue
Yes, A is right.