Let’s suppose you (USA dealer) imported one Earth Equipment machine from Italian dealer on March 1, 2017 at € 200,000 each, payable in 30 days. The exchange rate on March 1, 2017 was 1.18 US$/€. Then you sold the machine in the US market at US$250,000 in cash on March 29, 2017. On April 1, 2017, you paid to Italian car dealer at the exchange rate of 1.23 US$/€. What was profit or loss from this business in terms of US$? (assume all costs are included in price.) show all working.

Answer rating: 100% (QA)

To calculate the profit or loss from this business transaction we need to consider the fo... View the full answer