Question

Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camerrand. The denomination of all transactions with these companies is alaries (AL), the Camerrand currency. During 2017, Benjamin acquires 25,000 widgets at a price of 8 alaries per widget. It will pay for them when it sells them. Currency exchange rates for 1 AL are as follows: September 1, 2017 $ 0.48 December 1, 2017 0.42 December 31, 2017 0.50 March 1, 2018 0.43

Answer 1

Answer:

the picture attached is the main question while the solution is given in the explanation box below

Explanation:

a)

2017 = Loss = 25000 * 8 * [0.42-0.50] = 16000

2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000

b)

2017 = gain = 25000 * 8 * [0.48-0.42] = 12000

c)

2017 = Loss = 25000 * 8 * [0.48 - 0.50] = 4000

2018 = Gain = 25000 * 8 * [0.50-0.43] = 14000