Final answer:
The price of a six pack of Bass Ale from an English brewery to a US grocery store depends on the exchange rate between the British pound and the US dollar, varying from $7.80 to $12.00 per six pack as the rate changes from $1.30 to $2.00 per pound.
Step-by-step explanation:
When a brewery in England is looking to sell its Bass Ale to a grocery store in the United States, the pricing must be considered in terms of exchange rates between the British pound and the US dollar. Initially, if a six pack of Bass Ale is priced at £6.00 and the exchange rate is $1.30 to the pound, the cost for the grocery store would be 6.00 × $1.30 = $7.80 per six pack. However, if the exchange rate changes, with the dollar weakening to $2.00 per pound, the price for the same six pack of Bass Ale would increase to 6.00 × $2.00 = $12.00 per six pack.
In another case, if the exchange rate is $1.50 per pound, the price would then be 6.00 × $1.50 = $9.00 per six-pack. This shows the impact of fluctuating exchange rates on international business transactions and how they affect the cost of imported goods, such as Bass Ale, to stores in the US. Therefore, grocery stores must stay informed about current exchange rates to accurately price imported goods.