the revenue last quarter was 3.5 million EUR and the expenses were 3.7 million U
ID: 1257606 • Letter: T
Question
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 1.3491Explanation / Answer
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
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