Question

Toyota sold camrys in the u.s. and charged 23,000 us dollars per camry when the exchange rate was 120¥ per us dollar. if the dollar weakens and the new exchange rate is 100¥ per us dollar, to receive the same amount of yens per camry (as before when the exchange rate was 120¥ per us dollar), what price in us dollars would toyota have to charge per camry at the new exchange rate of 100¥ per us dollar?

A. $22.450
B. $27.000
C. $20.158
D. $25.300
E. $20.000

Answer 1

Toyota would need to charge $27,600 per Camry to maintain the same amount of yen revenue following the weakening of the US dollar from the exchange rate of 120¥ to 100¥ per US dollar. The given answer options do not list this correct amount, which suggests a possible error in the question.

Step-by-step explanation:

If Toyota originally sold Camrys at $23,000 and the exchange rate was 120¥ per US dollar, then they were receiving 2,760,000 yen per Camry (23,000 * 120). To find out the new price in US dollars that would give them the same amount of yen when the rate is 100¥ per US dollar, you would divide the original yen amount by the new exchange rate. Therefore, the calculation would be 2,760,000 yen / 100¥ per US dollar = $27,600.

However, this result is not an option given in the question. The question might have a typo, but if we accept the calculation, Toyota would have to charge $27,600 per Camry to receive the same amount of yen as they did at the original exchange rate of 120¥ per US dollar, with the new exchange rate being 100¥ per US dollar.