nerdexam
AFP

CTP · Question #900

(Topic 9) 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…

The correct answer is D. 1.7033 C$/US$. See the full explanation below for the reasoning.

Question

  • (Topic 9)

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?

Options

  • A0.3259 US$/C$
  • B1.1500 US$/C$
  • C0.5871 C$/US$
  • D1.7033 C$/US$

How the community answered

(56 responses)
  • A
    5% (3)
  • B
    9% (5)
  • C
    2% (1)
  • D
    84% (47)

Community Discussion

No community discussion yet for this question.

Full CTP Practice