Answer:
i. To calculate the total expenses in Kenya shillings incurred by Wekhomba, we need to first convert the cost of the laptop in Uganda shillings to Kenya shillings using the exchange rate of 1 US dollar = Ush 1016. The cost of the laptop in Kenya shillings is (1,050,000/1016) = 1,032,474.40
We then need to add the transportation cost of 60 US dollars which is (60 * 1016) = 61,596 Kenya shillings.
Taxes in Kenya amounting to 55% of the cost in Uganda is (1,050,000 * 55/100) = 577,500 Uganda shillings which is (577,500/1016) = 567,715.20 in Kenya shillings.
The total expenses in Kenya shillings incurred by Wekhomba is 1,032,474.40 + 61,596 + 567,715.20 = 1,661,785.60
ii. To find the expenditure on transportation and taxes as a percentage of the total expenditure, we need to divide the sum of transportation costs and taxes by the total expenses and multiply by 100.
Expenditure on transportation and taxes is 61,596 + 567,715.20 = 629,311.20.
Expenditure on transportation and taxes as a percentage of the total expenditure = (629,311.20/1,661,785.60) * 100 = 37.9%
iii. To find the total value of the laptop in Tanzanian shillings, we first need to convert Kenya shillings to Tanzanian shillings using the exchange rate of 1Ksh = Ush 24.83 and Tsh 1 = Ksh 0.0714,
1,661,785.60 Kenya shillings is (1,661,785.60/24.83) = 668,817.51 Uganda shillings which is (668,817.51 / 0.0714) = 93,622,817.16 Tanzanian shillings
iv. To find the overall increase in value of the laptop as a percentage of the buying price, we need to divide the increase in value (total value in Tanzanian shillings - buying price) by the buying price and multiply by 100.
Overall increase in value = 93,622,817.16 - 1,050,000 = 92,572,817.16
The overall increase in value as a percentage of the buying price = (92,572,817.16/1,050,000) * 100 = 88.1%
Explanation: