Question

wsm wine importers, inc. purchased 75,000 cases of french wine at a cost of 6,000,000 euros. if the current exchange rate is 0.7576 euros to the u.s. dollar, what is the purchase price of the wine in u.s. dollars? a. $9,328,651 b. $9,684,148 c. $7,919,747 d. $8,350,012

Answer 1

Hi! To calculate the purchase price of the wine in U.S. dollars, we need to convert the cost in euros to dollars using the given exchange rate.

The cost of the wine is 6,000,000 euros, and the exchange rate is 0.7576 euros to the U.S. dollar. To convert, we will divide the cost in euros by the exchange rate:

6,000,000 euros / 0.7576 euros per dollar = 7,919,747 U.S. dollars

Therefore, the purchase price of the wine in U.S. dollars is $7,919,747 (option C).