Homework Soursethe revenue last quarter was 35 million EUR and the expenses
the revenue last quarter was 3.5 million EUR and the expenses were 3.7 million USD, what would the USD/EUR exchange rate have to be for the profit margin to be 14.0%? Please report your answer to exactly two decimal places, e.g., 49.018 would be 49.02. USD/EUR is 1.3491
the revenue last quarter was 3.5 million EUR and the expenses were 3.7 million USD, what would the USD/EUR exchange rate have to be for the profit margin to be 14.0%? Please report your answer to exactly two decimal places, e.g., 49.018 would be 49.02. USD/EUR is 1.3491
Solution
Answer:
profit margin of 14% means that profit of 14% x 3.7 million USD = 0.518 USD
Thereofore the sales in USD would be = 3.7 + 0.518 = 4.218 USD
So the exchange rate = 4.218/3.5 USD/EUR = 1.2051 USD/EUR
