Craig runs a business importing shoes from Italy and selling them in Namibia.
For the below questions (a – g), rounds your answers to cents (two decimal places).
a) If the Euro / Namibian dollar exchange rate is € 1 = N$ 13.90 and the cost price of a
pair of shoes is € 15.00, how much is the cost price of a pair of shoes in N$?
b) Craig decides to put a mark-up of 20% on the cost price of the shoes. How much
will he try to sell the shoes for (in N$)?
c) It costs Craig N$ 13.50 per pair of shoes to transport the shoes from Italy to
Namibia. In addition, Craig has to pay 10% import tax on the cost price of each pair
of shoes. What are Craig’s total expenses per pair of shoes?
d) Craig has a fixed cost of N$ 5,000 per month to run the business. How many pair of
shoes must Craig sell in a month to make a profit?
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